The Royal Bank of Scotland (RBS) Group Pension Fund has awarded infrastructure fund manager Hastings Funds Management a £750 million ($1.1 billion) mandate.
The Westpac-owned fund manager will develop and manage the pension fund's private market infrastructure assets.
Hastings will source and manage core infrastructure investments in the United Kingdom and select Organisation for Economic Co-operation and Development countries, and manage the assets over the long term.
Investments could include both equity and debt infrastructure assets, including owning the whole capital structure of an asset, the company said.
"We are delighted to be selected to partner with the RBS Group Pension Fund to invest in the growing infrastructure asset class," Hastings chief executive Andrew Day said.
"As a specialist in equity and debt infrastructure, Hastings is well placed to develop investment solutions for the RBS Group Pension Fund."
The mandate is an initial investment and could be followed by further allocations.
It boosts the firm's assets under management significantly. The firm had $6.7 billion as at 31 December 2011.
Hastings is a subsidiary of Westpac Banking Corporation.
