1. OECD/IOPS Global Forum on Private Pensions
Pension Funds and Infrastructure Investments: The Australian Case
Ross Jones
Deputy Chairman, Australian Prudential Regulation Authority

2. Infrastructure initiatives
Positive impact on GDP
Mechanisms to facilitate infrastructure investment
Tax changes

3. Definitions Predictable cash flows Inflation linked
Sustainable competitive advantage
Low operating expenses as a percentage of revenue
Long operating life
‘Essential service’ with low demand elasticity

4. The Australian infrastructure market
5% of assets under management allocated to infrastructure
Consideration variation in %
Preference for ‘brownfield’ over ‘greenfield’
Preference for regulated entities

6. Regulatory concerns Sole purpose test Pension funds as magic pudding
Investment strategy around infrastructure
Risk diversification?

7. Regulatory concerns Liquidity Valuation
Problems with ‘greenfield’ investment

8. Regulatory concerns Governance Joint ventures and partnerships
Political impacts
Foreign jurisdictions

9. Disclosure principles for listed infrastructure
Key relationships
Management and performance fees
Related party transactions
Financial ratios
Capital expenditure and debt maturities
Foreign exchange and hedging
Base case financial policy
Valuations

10. The future Matching government and fund expectations
Incentives and their cost