Funding the future: the appeal of infrastructure investment
While investment in state-owned entities is fraught with risks, infrastructure investment holds more appeal. It’s an increasingly popular investment space
There is increasing pressure on pension funds to invest in the real economy, whether through infrastructure, which can make investment sense, or into state-owned enterprises, which will hardly ever do so.
Erich Potgieter, head of retirement funds at consultants Willis Towers Watson, says this concept is nothing new: there are already vehicles in place to invest in infrastructure. Futuregrowth, for example, started the first such fund a quarter of a century ago, and Old Mutual began its socially responsible Ideas Fund at about the same time...