Infrastructure still suits super: KPMG
Infrastructure remains a genuine investment opportunity for superannuation funds, according to KPMG infrastructure leader, Julian Vella.
Vella told this week's Australian Institute of Superannuation Trustees (AIST) conference on the Gold Coast that the opportunities existed because the traditional sources of financing had dried up.
He said Australia was considered to need around $750 billion in infrastructure in the next 10 years - a "huge infrastructure requirement that won't go away." Vella acknowledged that while infrastructure as an asset class was regarded as low risk and stable, this could not be said of all segments of the asset class.
"Some segments have different risk profiles," he said.
Vella said it was these differing profiles, which accounted for some funds preferring established "brown field" infrastructure to new "green field" projects.
He said the overall picture for infrastructure had changed post the global financial crisis because capital was no longer low cost.
"Debt providers now have a different view," he said.
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