Pension Funds Infrastructure Investments – Who Benefits?
The contentious issue surrounding infrastructure development investing for pension funds is the question – is it the role of the private sector, pension funds in particular, to develop infrastructure? Is this not instead the sole responsibility of the government of the day? Further, is it not that pension funds’ first responsibility is to their members?
Trustees have a fiduciary duty to only invest in assets where the reward is market-related and the risk acceptable. With that fundamental legal requirement, and in the backdrop of a highly taxed environment such as ours, it becomes particularly difficult to justify why the private sector should be expected to play an active role in infrastructural development.
Infrastructure projects include power generation plants and transmission grids, toll roads, railway lines, bridges, road and airports, hospitals, education facilities, communication towers, and many other such amenities. But who, in the bigger scheme of things, actually stands to benefit from investments in such developments? Click the link below for the full article ..Pension Fund Infrastructure Investments – Who Benefits