Universities Superannuation Scheme ups stake in Thames Water

In a vote of confidence in Thames Water’s new management team, the Universities Superannuation Scheme (USS) has purchased an additional 8.77% of the company from Wren House Infrastructure Management, taking its holding to nearly 20%.

This is the largest single investment in the £82.2bn portfolio managed by USS’s investment management subsidiary, and further builds on USS’s UK investments which stand at 45.8% of the Scheme’s total assets.

USS noted that while challenges remain, including ageing infrastructure and impact of climate change,

Thames Water has performed well over the last year. And with a strengthened board under chief executive Sarah Bentley, and a new, experienced executive leadership team in place, the company will target reducing leaks, investing in its infrastructure, improving customer service and working towards Net Zero.

Mike Powell, Head of the USS Private Markets Group, said: “Thames Water has some key challenges to overcome in the coming decades. Real progress has been made but customers and the general public quite rightly expect more. This will require hard work and further substantial long-term investment. USS is ready to support Thames on this journey but it can only be achieved with all the company’s stakeholders working together, creating the right environment to deliver the investment that everyone wants.”

USS first became an investor in Thames Water in 2017.