Key Points:
Most PPPs aren't attractive investments for
superannuation funds. Governments and other project sponsors need
to structure infrastructure investment opportunities in a way which
is attractive to superannuation funds in order to attract them as
investors.
Australian superannuation funds are crying out for opportunities
to invest in Australian infrastructure. At the same time,
Australian governments are keen to tap into superannuation funds to
help bridge Australia's infrastructure gap. So why isn't it
happening?
Superannuation funds exist to provide retirement income for
their members. They need to make a return on their funds to do so.
Superannuation funds will only invest in a piece of infrastructure
if the risk/return equation makes sense. Governments and other
project sponsors need to structure investment opportunities in a
way which is attractive to superannuation funds in order to attract
them as investors.
