The UK's Pension Schemes Act 2026 marks a decisive shift in the role of retirement savings in the economy. Policymakers have made their intent clear: UK pension capital should work harder, both for savers and for national growth, by allocating more funds to productive assets such as infrastructure.
But legislation alone does not deploy capital. UK Pension Scheme Trustees still face a more practical question: how should they access infrastructure in a way that aligns with fiduciary duty, operational reality and member outcomes?
In the debate that shaped the final version of the Act, this question became central. Following sustained industry engagement, the UK Government amended the Bill to ensure that UK listed investment companies, long used to access private assets, are explicitly recognised as a qualifying route for pension schemes to invest in infrastructure.
For trustees, the toolkit for accessing infrastructure is broader than ever. But within that expanding set of options, why are listed investment companies relevant?
A valuable tool in the box
Established UK listed investment companies combine the key attributes pension schemes require in practice. They provide immediate access to diversified portfolios of real assets, from renewable energy generation to transport and social infrastructure. Capital is fully invested from day one, with income generated from the outset.
They combine this with daily liquidity through public markets, giving schemes the flexibility to rebalance portfolios or meet member cashflows as needed — a critical feature for both DC schemes managing switching and decumulation, and DB schemes managing liability payments.
They also offer institutional-level governance in a familiar listed framework. Independent boards oversee the manager, ensuring alignment with investors and providing transparency through regular reporting and audited accounts.
Importantly, for trustees focused on value for money, listed investment companies do not levy charges on the investor. Costs are borne within the company as operating expenses are reflected in the share price. Costs are therefore not aggregated with the pension fund's own charges. For pension schemes — particularly those allocating at scale — this creates a simple, cost-efficient route to accessing infrastructure.
And crucially, this is not theoretical. The UK market already offers a range of established vehicles. The Renewables Infrastructure Group (TRIG), for example, provides exposure to diversified renewable energy generation and supporting infrastructure. These are investable, liquid, and well understood structures that trustees can access today.
Aligning policy with practice
The inclusion of listed investment companies in the final legislation was not simply a technical amendment; it was a recognition that limiting trustees to certain structures risks constraining outcomes. By ensuring these vehicles form part of the available toolkit, policymakers have acknowledged that efficient capital deployment depends on giving trustees practical, scalable and familiar routes to invest.
This alignment between policy ambition and implementation is critical. Delivering on the objectives of the Act — whether improved returns for savers or increased investment in infrastructure — depends not just on setting targets, but on enabling trustees to meet them with confidence.
A pragmatic path forward
For trustees, listed investment companies should be part of the core considerations for their schemes' infrastructure allocations. They offer immediate deployment, high liquidity, strong governance and cost transparency in a single structure.
Listed investment companies sit alongside other routes to investing in infrastructure including traditional GP-LP private funds and semi-liquid open-ended structures. LTAFs, for example, are a new addition to the toolkit, designed to provide semi-liquid access to private markets and help broaden access over time; though some investors may find the limited liquidity to exit their positions challenging.
As trustees translate policy ambition into investment outcomes, listed investment companies provide a practical, efficient and immediately available gateway through which pension capital can flow into infrastructure at scale today.
This article has been issued by The Renewables Infrastructure Group Limited "TRIG". It has been prepared and approved by InfraRed Capital Partners Limited ("InfraRed") in conjunction with TRIG. This article has been approved as a financial promotion by InfraRed, which is solely responsible for its compliance with applicable UK regulatory requirements in the Financial Conduct Authority's Handbook. Although InfraRed and TRIG have attempted to ensure that the contents of this document are accurate in all material respects, no representation or warranty, express or implied, is made to, and no reliance should be placed on the fairness, accuracy, completeness or correctness of the information, or opinions contained herein. This article is being distributed to and is directed only at persons who fall within the end ‘target market' for shares in TRIG (the details of which can be found in the section titled ‘Information for Distributors' on TRIG's Consumer Duty webpage). If you do not fall within the end target market for shares in TRIG, you should not treat this article as being distributed to or directed at you. This article is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. The article is intended for information purposes only and does not constitute investment advice. Past performance is not a guide to future performance. The value of any investment or the income deriving from them may go down as well as up and you may not get back the full amount invested. There are no guarantees that dividend and return targets will be met. An investment in TRIG will involve certain risks. There can be no assurance that TRIG will achieve comparable results to those contained in this document, that any targets will be met or that TRIG will be able to implement its investment strategy.
