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Give SMSFs infrastructure investment access: Slattery
Managed funds offering infrastructure assets are only a part of the answer for self-managed superannuation funds (SMSFs) seeking to make infrastructure investments, according to SMSF Association chief executive, Andrea Slattery.
Slattery has used a column published by AMP Capital to follow up on her organisation's submission to the Financial Systems Inquiry (FSI) urging changes to the regulatory settings to allow SMSFs to more easily directly invest in infrastructure projects.
"Those who argue managed funds offer infrastructure assets for the retail market must accept this is only part of the solution," she said.
"It overlooks the fact that [SMSF] trustees prefer to invest directly."
As well, Slattery cautioned that losses incurred by managed funds in the wake of the global financial crisis (GFC) had left trustees wary about the managed fund investment structure.
"Politicians and the industry need to bring some ingenuity to this issue, because it is hard to see the downside," she said.
"SMSF trustees want yield, and have the investment acumen to understand this asset class. On the other side of the ledger, Australia needs capital for infrastructure, and to effectively exclude a $590 billion pool seems short-sighted, to say the least. It's an issue the incoming government must address and engage on with the industry."
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