POWERED BY MOMENTUM MEDIA
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.
Recommended for you
The two funds have announced the signing of a non-binding MOU to explore a potential merger.
The board must shift its focus from managing inflation to stimulating the economy with the trimmed mean inflation figure edging closer to the 2.5 per cent target, economists have said.
ASIC chair Joe Longo says superannuation trustees must do more to protect members from misconduct and high-risk schemes.
Super fund mergers are rising, but poor planning during successor fund transfers has left members and employers exposed to serious risks.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
88.01 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
72.60 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
44.46 3 y p.a(%)
4
Pengana High Conviction Equities B
39.12 3 y p.a(%)
5
Pengana High Conviction Equities A
39.05 3 y p.a(%)
