Aviva Investors and the Pensions Infrastructure Platform announce $393 million fund for UK solar

Written By: Tracy Dawson Roses
June 17, 2015

Aviva Investors

On June 17, Aviva Investors, the global asset management business of Aviva plc and the Pensions Infrastructure Platform announced the launch of PiP’s first solar photovoltaics (PV) fund with Aviva Investors as the fund manager. The fund aims to deliver predictable, long-term inflation-linked cash flows through investing in small-scale solar PV installations in the UK. The return objective is materially to outperform inflation-linked government bonds, with the fund expected to generate quarterly income for pension fund investors.

The fund will have a hard cap of £250m ($393 million) and first close of the fund is expected in the second quarter of 2015. Returns of the fund are expected to be in line with the key feature of the PiP, running 2% to 5% above the UK retail price index.

Mike Weston, Chief Executive of PiP, said:

“The launch of this second fund within a year is an important addition to the PiP – we said we would make a renewables fund available through the PiP and that’s exactly what we have done. The fund broadens the investment opportunities on offer, and on market-leading terms of 50bps with no performance-related element it will deliver real value to pension schemes.”

Ian Berry, Head of Infrastructure at Aviva Investors, said: “Since 2010, when we identified the opportunity to create institutional quality investments in small-scale solar PV in the UK, we have led the market in terms of number and scale of investments made. We believe that this new fund and our partnership with PiP will enable an increasing number of UK pension funds to benefit from this expertise.”

Alan Goodman, Senior Portfolio Manager, Pension Protection Fund, said: “We became a Founding Investor of the PiP because we saw the need for a platform to provide pension schemes with access to the important asset of infrastructure in an affordable and suitable way. Today’s announcement marks the continued and successful growth of the PiP and we remain committed to this project.”