Fund management

Infrastructure's pension match

Martin Lennon, head of Infracapital, the infrastructure arm of M&G Investments, explains why infrastructure investment can be a good fit for pension funds needing good yields and long term returns to counter longevity risk. Returns from so-called 'brown-field' sites in the UK, offering investments in operational infrastructure, are currently between 7.5% and the mid-teens. 'Green field' projects where the infrastructure is yet to be built, are higher risk.