Pension Funds to Buy More Infrastructure on Energy Transition
- Global funds set higher targets for infrastructure investments
- IFM report details huge opportunity amid energy transition
Ports, energy transmission infrastructure and train stations are being added to infrastructure portfolios.
Photographer: Gregor Fischer/Getty ImagesPension funds around the world are significantly underinvested in infrastructure and will help drive growth as they tip more capital into assets that will be part of the global energy transition, according to a report by IFM Investors.
The path to cleaner fuels provides a “massive opportunity” for investors as more than A$100 trillion ($65 trillion) will be needed over the next three decades to restructure the economy, said IFM’s chief strategy officer Luba Nikulina in the report from the Melbourne-based global infrastructure firm. Private-sector pensions globally need to increase investment in infrastructure from 2% currently to get to their 5% target, while Australia’s superannuation funds require an increase from 7% to the aim of 10%, the report showed, citing Preqin Global data.