It must be music to Joe Hockey’s ears.
The Australian reports this morning that the Canada Pension Plan Investment Board and AustralianSuper have warned of an asset bubble in infrastructure, as a large pool of funds chase a limited supply of investments.
AustralianSuper chief executive Ian Silk said at an industry conference: “The principal issue is that there are not enough investable projects for institutional investors to participate in”.
We’re sure that Joe Hockey and his colleagues at the G20 won’t have missed this comment after maligning the availability of infrastructure funds at the G20 over the weekend. Particularly given their target of an extra 2% growth over the next 5 years.
So today we would like to write a $2bn cheque to invest in an infrastructure project, but we can’t and it’s not because [of] some marginal considerations: there’s not a pipeline of sound, reasonable value projects. That’s a big issue,” he said. “We’re concerned that the lack of projects will create an asset price bubble.
You can read more here.