The Pensions Infrastructure Platform (PIP) has announced that it is seeking Expressions of Interest (EOI) for investment management services from existing managers, teams or individuals.

The Pensions Infrastructure Platform has a target size of £2bn and will invest in core infrastructure assets, seeking returns of RPI +2 per cent to 5 per cent.

Models of investment management under consideration are the “buy” option, whereby PIP Limited, established to facilitate the development of the PIP, could outsource the management of some or all of PIP’s assets to an existing manager or managers.

The second model would be a “build” option whereby PIP Limited could develop its own in-house fund manager for all or some of the assets.

The third category would be a “hybrid” option combining elements of the buy and build options so outsource some sectors whilst keeping other parts in-house.

NAPF chief executive Joanne Segars said: “The start of the investment manager selection process is an important step in the PIP’s development. Founding investors will be seeking an investment manager, or managers, with a strong track record, expertise, the ability to innovate and generate appropriate investment opportunities, and an alignment with the interests of pension funds as long-term investors.

“We continue to make excellent progress. Earlier this year we were able to announce that pension funds had made soft commitments of £1bn to the PIP. In addition to the investment manager selection exercise, work is continuing on a number of key areas to prepare the PIP for launch later this year."

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