The Association of Superannuation Funds of Australia (ASFA) has released a discussion  paper exploring the future for super funds of investing in transport infrastructure.

 

In his introduction to the discussion paper, Gordon Noble, Director, Advocacy and Policy Strategy with ASFA said Australian superannuation funds had played a major part in financing  transport infrastructure, citing CityLink, Peninsula Link, EastLink (VIC), LEM7 (QLD), Lane Cove Tunnel and Cross City Tunnel (NSW) as all examples of projects that superannuation funds have invested in.

 

“Unfortunately while transport infrastructure has the capacity to deliver superannuation fund members with long-term, stable investment returns, the experience of superannuation funds investing in toll roads has been mixed, with some very public disasters,” he said.

 

“The superannuation industry’s transport infrastructure investment experience has implications for future investment. To ensure that investments deliver on the objective of providing Australians with income to support their retirement in the future, the superannuation industry will be much more proactive, not only when it comes to considering individual deals, but in advocating for investments that deliver on their investment return objectives and deliver productivity benefits that improve the environment for other superannuation fund investments, including property and equities, to prosper.

 

This paper considers both the challenges for superannuation funds investing in supply side transport infrastructure and whether there are investable demand side solutions that deliver productivity benefits.

 

“The question, from both a public policy perspective and for future investors, is where, and how, should infrastructure investments be made,” Mr Noble said.

The discussion paper is available here.