ASFA argues in favour of superannuation funds as the natural holders of infrastructure assets

The Association of Superannuation Funds of Australia (ASFA) has issued media releases stating it is supportive of governments privatising assets and argues superannuation and pension funds are the natural future holders of mature assets including ports and energy assets.

On 5 February 2014 ASFA called for the Federal Government to remove impediments to superannuation investment in infrastructure when it released its pre-budget submission.   ASFA stated  “As the country’s infrastructure needs continue to grow, it’s crucial the Government addresses the impediments that hinder super fund investment in this asset class“.

Citing a lack of infrastructure projects for superannuation and pension funds to invest in,  Pauline Vamos, CEO of ASFA, stated that ASFA would be in favour of the recycled capital model which ensured proceeds from government asset sales are invested into new projects:

There is no shortage of superannuation and pension funds that are looking to invest in infrastructure. There is only a shortage of projects to invest in. The key to unlocking pension capital is the maintenance of a stable regulatory environment, removing any impediments to states privatising assets and minimising transaction costs for funds. Australia’s strong rule of law and stable regulatory environment make Australia an attractive destination for long-term investors globally”.

ASFA’s Pre-budget submission is available here:  http://www.superannuation.asn.au/ArticleDocuments/1228/ASFA_2014-15Pre-Budget_submission.pdf.aspx

 

 

 

 

 

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