Infrastructure: Gaining Access Through Consortiums
Coverage of the 2011 Investment Innovation Conference.
BY Caroline Cakebread | February 14, 2012
Infrastructure is one long-term asset class that is well suited to meeting the long-term liabilities of pension funds – but getting access to the asset class is tough for small and mid-sized plans. In Canada, however, a new consortium approach has given a handful of smaller pension funds a leg up in the growing infrastructure space. At this year’s Investment Innovation Conference, two members of that consortium shared their experiences: Terri Troy, CEO with Halifax Regional Municipality Pension Plan, and Dan Goguen, head of private investments with New Brunswick Investment Management Corp., presented on how their group of pension plans pooled their money together to invest alongside the Canada Pension Plan Investment Board (CP- PIB). The group banded together for two recent infrastructure deals, including a 40% interest in 407 International Inc. (407ETR) for $3.8 billion.
Click on the image to watch Troy’s interview with BCTV and hear details about the consortium and the deal they put together.
You can also watch this interview with Goguen as he talked about the importance of infrastructure for pension plans, with its steady distribution, inflation protected revenue streams and long duration. He shared his thoughts the challenges for small and mid-sized plans when it comes to gaining access, even through infrastructure funds, which he notes tend to charge high fees for relatively modest returns.