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Detail needed to invest in infrastructure
Australian superannuation funds looking to invest in infrastructure need to know what they are buying, according to Future Fund head of infrastructure and timberlands, Dr Ralph Arndt.
Addressing the Association of Superannuation Funds of Australia (ASFA) national conference, Arndt said that while the Future Fund had a substantial exposure to infrastructure it was by no means the most appropriate investment for super funds.
"Infrastructure has no divine right to attract capital," he said.
Indeed, Arndt said that in many respects infrastructure investment was illogical because it usually involved high leverage and complex implementation.
However he said that for the Future Fund the returns for the risk had been reasonably good.
"But you need to know what you're buying," Arndt said.
"Infrastructure assets have to fight for their right to survive in a diversified portfolio," he said.
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