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Analysis confirms infrastructure outperformance
Industry Super Network (ISN) has conducted research which shows the long-term outperformance of infrastructure investment compared to other investments.
Industry SuperFunds' infrastructure investments have outperformed other investments on a dollar-per-dollar basis over the past 15 years, it said.
Research conducted by ISN has revealed that $100 invested in infrastructure 15 years ago would be worth $562 now.
It was a significant return compared with the next-best returning investment — unlisted property — and over two-and-a-half times more than investment in cash or foreign equities.
"Over the last 10 and 15 years, the value of every dollar invested on behalf of Industry SuperFunds is worth substantially more than every other type of investment," ISN chief executive David Whiteley said.
"Even with the volatility of the last five years, infrastructure has been one of the best performing investments."
Whiteley said Industry SuperFunds had been global pioneers of superannuation and pension fund investment in infrastructure.
"Investment in significant Australian infrastructure contributes to superior returns for members — and helps keep the wheels of the economy moving," he said.
ISN recently said it was prepared to invest up to $15 billion in Australian infrastructure over the next 15 years, granted policy settings were right.
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Compared to how funds were allocated to March this year, industry super funds have slightly decreased their allocation to infrastructure in the six months to September – dropping from 11 per cent to 10.6 per cent, according to the latest APRA data.
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