Adequate infrastructure investment is a challenge for Australia,
and as Linda
Evans tells BRR Media, superannuation funds could offer a
solution if the risk/return equation can be solved.
Linda Evans
There have been some recent calls for superannuation funds to
ensure they have a lot of liquidity in those funds. One of the
challenges that presents for funds looking to invest in
infrastructure assets is that the nature of infrastructure assets
is that they are long-term assets, and the benefit from holding
those assets come from being able to get significant returns over a
long period of time.
During that ownership you have to invest to upgrade and to add
additional capacity and those are what are called lumpy
investments, so they'll add on much more capacity than you need
in the short term, so you really need to hold for a long term to
get the value coming from those investments. So the more liquidity
that you need in a superannuation fund, the less the
