L&G has partnered with IFM Investors — a global infrastructure manager owned by Australian pension funds.
This partnership will see IFM run the infrastructure investments for L&G’s new DC focused private markets access fund (PMAF), launched in July this year. This fund is part of L&G’s drive to boost DC investments into private markets, to the benefit of its 5.3m members.
One of the focal points of the partnership’s PMAF strategy will be energy transition, decarbonisation and the enabling of new renewable energy sources which will play an important role in the move to net zero status.
IFM Investors has considerable experience investing in infrastructure, first for Australian DC funds, and then more widely – for corporate DB and LGPS funds.
This partnership also aims to identify opportunities for driving significant investment in the UK, with both L&G and IFM Investors committed to increasing investment in local assets.
In November of last year, IFM Investors signed a Memorandum of Understanding (MoU) with the UK Government signalling its intention to invest £10 billion in the UK, including infrastructure and energy transition projects.
In October, IFM Investors launched a landmark blueprint authored by UK and Australian pension funds that recommends carefully targeted policy action to help unlock pension capital in order to contribute to the new UK Government delivering on its clean power by 2030 mission.
L&G is one of a number of pension providers that are signatories to the UK Government’s Mansion House Compact, committing them to invest at least 5 per cent of their default funds into private market assets and productive finance.
IFM Investors head of client solutions EMEA, Armit Bhambra says: “In Australia, where IFM is headquartered, we have seen how investing in private markets and infrastructure can deliver long-term, risk adjusted returns for working people’s retirement savings – we believe there is a significant opportunity for DC funds in the UK to take advantage of this approach in a way that can help them deliver for their members and further their sustainability objectives.”
“We believe this partnership will open the door to new opportunities for IFM Investors and L&G in areas such as the energy transition and infrastructure in the UK, with a focus on creating long-term value for our clients, and most importantly the DC members that invest with L&G.”
Legal & General head of DC investments Jesal Mistry adds: “Our ambition with the L&G Private Markets Access Fund is to give DC savers exposure to a diversified range of exciting private markets opportunities with the potential to boost their long-term retirement outcomes. Infrastructure has a critical role to play as part of this asset mix, so we’re delighted to be working with IFM as a partner on the Fund.”