POWERED BY MOMENTUM MEDIA
Canadian pension funds eye infrastructure investments
Canadian pension funds are setting up local investment teams drawn by a growing pipeline of infrastructure investments on offer by state governments.
Perpetual Corporate Trust general manager Andrew Cannane said two Canadian pension funds - OP Trust and Borealis — had already established offices in Sydney staffed by employees from Canada with more to follow.
Cannane said Perpetual Corporate Trust was aware of the movements by the pension funds as it currently provides trustee services for the investments of six Canadian pension funds and had recently visited other funds in Canada which were "are moving to the next stage of their commitment to Australia".
He said the funds were being drawn to the Australian infrastructure market as a result of the Federal Government's "asset recycling initiative" that provides state governments a 15 per cent bonus payment for funds invested in new infrastructure projects from the proceeds of selling old assets.
Cannane said there had been a strong response to the policy with state governments moving to sell current assets including the Port of Melbourne, the NSW and QLD poles and wires, the Port of Gladstone, the Port of Townsville and BG Pipelines.
"We are expecting fierce competition for these assets which may make Australia a relatively expensive place to invest and result in returns being bid down."
Canadian pension funds have already secured some large infrastructure assets with Caisse de depot purchasing a 27 per cent stake in the Port of Brisbane, the Canada Pension Plan Investment Board and Dexus privatisating the Commonwealth Property Office Fund and the Ontario Teachers' Pension Plan purchasing Leighton's NextGen assets.
AUTHOR
Jason Spits
Jason has been writing on financial services since 1999 and has worked for on a number of trade media titles in both a full time and freelance capacity. He joined Money Management and Super Review in 2013 in the role of Senior Journalist.
Recommended for you
Taking a purely passive investment approach is leaving many investors at risk of heightened valuation risks, Allan Gray and Orbis Investments have cautioned.
Annual trimmed mean inflation saw a slight spike in April, according to data from the ABS.
Active managers say that today’s market volatility and dislocation are creating a fertile ground for selective stock picking, reinforcing their case against so-called “closet indexers”.
Platform leaders admit they’re operating under constant pressure and a persistent “state of paranoia” to keep pace with technology that is reshaping how clients access and interact with their wealth.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
92.15 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
53.24 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
43.15 3 y p.a(%)
4
DomaCom Shoreline North Coogee
36.26 3 y p.a(%)
5
GAM LSA Private Shares AU I
35.87 3 y p.a(%)
