- February 2012: Vol. 5, Number 2

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U.K. Pension Fund Allocates to Two Infrastructure Funds


The Leicestershire County Council Pension Fund, a U.K. pension fund, has allocated £70 million ($111 million) to two global infrastructure funds managed by Kohlberg Kravis Roberts and Industry Funds Management. The allocation, which was split evenly between the two, represents 3 percent of Leicestershire’s portfolio.

The two investments are the Leicestershire’s first foray into infrastructure. In the pension fund’s 2010–2011 annual report, the Leicestershire pension stated its rationale for investing in infrastructure: “The most natural asset for protecting the fund against its inflation risk is U.K. government index-linked bonds, but these are very expensive as there are a number of price-insensitive buyers and a lack of supply. As a result, the investment subcommittee has agreed to an initial three-prong investment strategy

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