The Analysis Of Infrastructure Investment Of Australian Pension Fund And Its Enlightenment To China

Infrastructure which provides public service is conditions for survival and development of society. Infrastructure includes water conservancy facilities, transportation facilities, communications facilities as well as social welfare facilities, such as school, hospital, and indemnificatory housing. During the process of urbanization, the demand for infrastructure in our country is constantly increasing. However in traditional way, the government which is acting as the major investor in the infrastructure occupies a dominant position in infrastructure investments. But with the population aging coming, pension payment has become the pressure of the government. So under pressure, government tries to discover new models for infrastructure financing.Since risk-adjusted return of infrastructure investment is related with inflation rate, so investment in infrastructure can be an effective way to fight against inflation and realize appreciation. This character greatly attracted pension funds to invest in infrastructure. In addition, infrastructure investment also has a long duration, which exactly matches the characteristics of long-term investments of the pension fund. Therefore it is beneficial for pension funds to invest in infrastructure and it is a win-win-win scenario to pension funds, the public sector and infrastructure.Since the history of pension funds investing in infrastructure in China is not long, we lack of experience. So the need to learn from other counties is necessary. Studying from other counties about pension funds investing in infrastructure, the author has concluded some models such as direct investment, public-private partnership, trust funds and so on.Through the case study about Australian superannuation funds, something has been found. Australian superannuation funds and annuity funds in China are similar in nature, which means they are both defined contribution, so when people make decision to invest, liquidity must be consideration. In1990s, Australian pension funds began to invest in infrastructure, and now they have found a mature model. Therefore, this article will choose Australian pension funds as case study, and make depth analysis, then make some suggestions to the annuity fund to invest in infrastructure.This article consists of6chapters:The first chapter mainly introduces the background, meaning, methods and innovations of this research. Besides that, the author also summarizes research results. Summarizing some knowledge about infrastructure and the invest models.The second chapter mainly introduces something about infrastructure including importance of infrastructure, classes of infrastructure, financing of infrastructure projects.The third chapter mainly introduces something about Australian pension funds such as funds scale and reviews the traditional approaches and alternative approaches to investing in infrastructure by pension plans.The fourth chapter is case study by introduce some superannuation funds. Then the author analyzes the vehicles of investment and asset allocation.The fifth chapter evaluates the vehicles of investment and introduces some income indicators.The final chapter is enlightenment of Australian case to China. It contains the condition about pension funds in China, pattern design and strategy suggestion.The innovations of this article are introducing the method of case study and also proposing enlightenments to China. However, because of the limitation of data collection, this article is lack of empirical analysis and needs to be perfect in the future.