Pension schemes are gearing up to step into banks’ shoes and provide financing for lending, infrastructure spending and the property market, but they don’t want to be treated as a backstop for buying just anything.

Steven Daniels, chief investment officer at Tesco Pension Investment - the principal investment manager for the supermarket giant's £7bn UK staff pension scheme - told delegates at the National Association of Pension Funds conference yesterday: "Pension funds are the new banks. Everyone sees us as long-term lenders, and that is great. I'm happy to participate. We are the new banks, good banks potentially. But we are not mugs."