At the beginning of the century, UK equities accounted for around half of the money tied up in UK pension funds, but they now account for below 10% of scheme assets.Ministers would like to see more of it invested in the UK.
The reasoning is that, as infrastructure assets take many years to build and generate an income stream, pension funds are the natural and obvious investors in some projects because they can afford to take a long-term view. The Financial Times reported on Friday that proposals being considered by the Treasury would see the PPF's remit widened so it has a more active role in taking on company pension plans that have not failed.The Daily Telegraph reports today that the Tony Blair Institute will recommend next week that sponsors of the smallest 4,500 defined benefit schemes should be allowed the option of transferring to the PPF.