The Greater Gwent Pension Fund has unveiled a comprehensive three-year strategy aimed at enhancing its investment approach in the UK. The strategic plan entails a deliberate effort to “level up” by directing approximately 6% of its portfolio towards infrastructure and real estate investments during this period.

The £4 billion pension fund has indicated that its latest investment strategy aligns with the UK government’s vision for Local Government Pension Scheme (LGPS) funds. This plan advocates for allocating up to 5% of funds towards projects that actively contribute to the development of local areas in the UK.

As a key component of its strategy, the Greater Gwent Pension Fund aims to channel investments of up to 2% (£80 million) from its total portfolio annually for the next three years specifically into infrastructure and real estate projects.

This allocation is instrumental in enabling Greater Gwent to achieve its overarching long-term asset allocation goals, comprising 12% directed towards infrastructure and 8% allocated to real estate, as outlined by the fund.

Nathan Yeowell, Greater Gwent Pension Fund’s chair, said: “This policy will support greater growth in the UK economy and, where possible, we will look to make these investments into Welsh projects. At a time of slow economic growth, we want to invest in medium-to-long term economic, environmental, and social priorities.”

“We have already made several significant fund commitments including innovative Renewable Energy projects in Newport and Blaenau Gwent, with others across North Wales in the pipeline.

“The investment at the Uskmouth site, in particular, will contribute to national energy security goals and carbon reduction, while creating skilled local jobs and growth in the local economy,”