A Citigroup report said Australia is seeking a funding of $805 billion from pension funds for infrastructure projects, Financial Times reports. Nearly $1.36 trillion is presently held in national retirement savings. However, the funds are unwilling to invest in infrastructure assets due to the transfer of market risk to investors, instead of contractual returns. Liquidity is also a matter of concern for the superannuation funds. Domestic superannuation funds have a maximum 5% allocation to the sector. Among international pension funds, the Canada Pensions Plan Investment Board has allocated more than $7.34 billion in Australian infrastructure and commercial property in less than three years.
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