Home' Future Building: The Australian Infrastructure Review : July 2011 Contents Infrastructure investment offers up the long-
term, stable returns that superannuation funds are
seeking, but policymakers and stakeholders are yet
to reach a consensus on the structure and reforms
needed to get the most out of the relationship.
Total investment in infrastructure assets by most
super funds is quite low. The average Australian
fund has allocated just five per cent of its portfolio
to infrastructure, compared to around 29 per cent
in Australian shares and 11 per cent in fixed interest
In aggregate, Australia’s $1300 billion
superannuation industry has made overall
infrastructure investments of less than $65 billion,
according to 2009 research released by Rice
Warner. And a substantial proportion of these
investments have been made in offshore assets.
It is not surprising that this outcome has been
the subject of spirited public debate and analysis.
Especially when you consider that infrastructure
expenditure has an established link to productivity,
job creation and financial prosperity. Conservative
estimates show that each dollar put into
infrastructure boosts economic activity by around
$1.40, which benefits the 60 per cent of Australians
who directly contribute to superannuation.
Some leaders of the superannuation sector
respond with the argument that these public policy
Super funds and infrastructure; ideal bedfellows
Pacific Hydro’s Challicum
Hills Wind Farm in Victoria.
and other superannuation
funds invest in renewable
energy companies such as
IFM-owned Pacific Hydro.
Volume 2 Number 1
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