Tuesday, December 27, 2011

A New Alternative Investment: Infrastructure

Institutional Investors are planning to invest directly in infrastructure projects such as fixing roads, bridges, water lines, sewage plants and dams.  Returns on these investments are above their benchmarks.  Ontario Teachers' Pension Plan was up 13% in 2010 versus 4% for their benchmark and Ontario Municipal Employees Retirement Systems was up 10.1% versus 8.5% for their benchmark.  Other investors looking at the $50 trillion market (over the next 25 years) include California Public Employees' Retirement Systems, California State Teachers' Retirement Systems, Abu Dhabi Investment Authority, China Investment Corporation and Government Investment Corporation of Singapore.

The source for this article can be accessed here.

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