The fund, which made its first allocation to infrastructure in November 2006, has until now had no more than 1 per cent invested in European and US funds.

“It is obvious that emerging market countries, such as India and China, need new infrastructure, so it definitely makes sense having some money invested there,” said Claus Jørgensen, head of equities at the fund.

The fund has an infrastructure allocation target of up to 4 per cent, which it aims to reach in two to four years.

Mr Jørgensen admitted the fund has been hesitant about certain segments of the infrastructure sector, since a lot of money has been ploughed into infrastructure funds recently. That has, in particular, been the case with very developed infrastructure projects in developed

markets, he says, which may be driving returns down.

“Therefore, we’re mainly interested in special segments, for example, the energy sector, where we have historically invested in both traditional power plants and clean energy. We are also looking for funds that are able to buy and develop assets in order to enhance returns,” he said.

PKA indicated that it also has plans to increase its private equity allocation from 3.5 per cent to 7 per cent – a target it aims to reach within the next three years.

CL

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