POWERED BY MOMENTUM MEDIA
Budget changes won’t spark infrastructure investment
Infrastructure manager Minerva Advisory has pouredcold water on recent tax incentives to make it easier for infrastructureinvestment in Australia, saying the Government needed to fundamentally changethe structure of underlying investment.
Speaking at a BNP Paribas Investment Partnersand Antin Infrastructure breakfast in Melbourne, managing director of MinervaLee Burnell said the tax incentives announced in the last budget were notenough to encourage investors to invest more in core infrastructure.
“There are not enough deals available to satisfythe domestic appetite for infrastructure, and I think importantly, theredoesn’t seem to be a solution bridging the gap,” Burnell said.
Heavy investment was needed in greenfieldinfrastructure, but offering tax incentives did nothing about the problems oflack of operating history, construction risk, and the lack of early revenue, hesaid.
While the biggest super funds in Australia werecapable of funding infrastructure projects because of their sheer size, smallerfunds and institutional players were unable to secure exclusivity in aninfrastructure project because of the scarcity of smaller deals available,Burnell said.
That made it likely that participants wouldincur breaking deal costs, he said.
That was a real problem for both investors andfund managers, Burnell added.
Recommended for you
Governor Michele Bullock took a more hawkish stance on Tuesday, raising concerns over Donald Trump’s escalating tariffs, which sent economists in different directions with their predictions.
Equity Trustees has announced the appointment of Jocelyn Furlan to the Superannuation Limited (ETSL) and HTFS Nominees Pty Ltd (HTFS) boards, which have oversight of one of the companies’ fastest growing trustee services.
Following growing criticism of the superannuation industry’s influence on capital markets and its increasing exposure to private assets, as well as regulators’ concerns about potential risks to financial stability, ASFA has released new research pushing back on these narratives.
A US-based infrastructure specialist has welcomed the $93 billion fund as a cornerstone investor.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Global X GlobalX FANG+ ETF
33.51 3 y p.a(%)
2
Spire Oaktree Opportunities XI Second Close
32.68 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.62 3 y p.a(%)
4
Spire Oaktree Opportunities XI First Close USD
31.36 3 y p.a(%)
5
Fidante Credit Suisse Global Private Equity
29.60 3 y p.a(%)
