Correspondence: Danny Latham, First State Investments, UK. E-mail: dlatham@firststate.co.uk

¹is Head of Infrastructure Investments, Europe, First State Investments. He is a pioneer of the infrastructure funds management industry, having been acquiring and managing infrastructure assets for the last 14 years. He currently has overall responsibility for First State's European infrastructure business and is fund manager of their European Infrastructure fund. He previously spent three years at RREEF Infrastructure, and was a founding member of the AMP Group's infrastructure team in 1994.

Received 20 March 2008; Revised 20 March 2008.

Abstract

Falling equity markets and a re-rating of credit markets in an inflationary environment are prompting many pension fund managers to reassess their strategic asset allocations. Moreover, a tactical overweight to alternatives may support investment performance at a time of increased uncertainty in listed markets. For some, investment allocation decisions made now may prove to be the most significant for risk-adjusted returns since those made following the 2000 equity market downturn. What role can unlisted infrastructure investments play within a pension fund investment portfolio and why does it make particular sense to include them now?