OECD Working Papers on Finance, Insurance and Private Pensions

ISSN :
2079-7117 (online)
DOI :
10.1787/20797117
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Selected studies on finance, insurance and private pensions policy prepared for dissemination in order to stimulate wider discussion and further analysis and obtain feedback from interested audiences. The studies provide timely analysis and background on industry developments, structural issues, and public policy in the financial sector. Topics include risk management, governance, investments, benefit protection, and financial education. Previous papers addressing these policy issues are available via http://dx.doi.org/10.1787/19936397.
 

Pension Fund Investment in Infrastructure

A Comparison Between Australia and Canada You or your institution have access to this content

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Author(s):
Georg Inderst, Raffaele Della Croce1
Author Affiliations
  • 1: OECD, France

Publication Date
18 July 2013
Bibliographic information
No.:
32
Pages
54
DOI
10.1787/5k43f5dv3mhf-en

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Australian and Canadian pension funds have been pioneers in infrastructure investing since the early 1990s. They also have the highest asset allocation to infrastructure around the globe today. This paper compares and contrasts the experience of institutional investors in the two countries looking at factors such as infrastructure policies, the pension system, investment strategies and governance of pension funds. The ‘Canadian model’ and the ‘(new) Australian model’ of infrastructure pose a challenge to the ‘private equity model’, dominant in Europe and the USA. Important lessons can be learnt by both policy makers and investors.
Keywords:
pension funds, infrastructure investment, infrastructure, pension regulation, institutional investors, asset allocation, Canada, private finance, infrastructure policy, Australia
JEL Classification:
  • G15: Financial Economics / General Financial Markets / International Financial Markets
  • G18: Financial Economics / General Financial Markets / Government Policy and Regulation
  • G23: Financial Economics / Financial Institutions and Services / Non-bank Financial Institutions; Financial Instruments; Institutional Investors
  • G28: Financial Economics / Financial Institutions and Services / Government Policy and Regulation
  • H54: Public Economics / National Government Expenditures and Related Policies / Infrastructures; Other Public Investment and Capital Stock
  • J26: Labor and Demographic Economics / Demand and Supply of Labor / Retirement; Retirement Policies