Jargon Buster: Infrastructure
Infrastructure refers to projects such as bridges, toll roads, public amenity buildings (such as army barracks) where a governmental institution requires private investment. There are two different types of infrastructure: “greenfield”, which refers to projects which have not yet been built, and “brownfield”, which refers to existing infrastructure - an already-built toll road, for instance. It is more common for trustees to invest in brownfield than greenfield infrastructure, because greenfield projects are more risky. Infrastructure is an increasingly popular investment for pension schemes and it is much talked-about because of a government/National Association of Pension Funds-led project, the Pensions Infrastructure Platform, to make infrastructure investment available to smaller pension schemes. However, it still only represents a small proportion of overall scheme assets.