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Institutional Investors and Infrastructure Financing

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  • Raffaele Della Croce
  • Juan Yermo
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    Abstract

    The economic downturn is likely to have a lasting impact on the fund management industry and on long term asset allocation strategies of institutional investors. On one hand, in promoting more cautious investment strategies and a greater focus on portfolio risk management in the coming years. On the other hand, the prolonged low-yield environment has heightened the need for return-enhancing strategies, pushing some investors to invest in alternative assets. More fundamentally, the role of institutional investors in long term financing is constrained by the short-termism increasingly pervasive in capital markets as well as structural and policy barriers such as regulatory disincentives, lack of appropriate financing vehicles, limited investment and risk management expertise, transparency, viability issues and a lack of appropriate data and investment benchmarks for illiquid assets such as infrastructure. Les investisseurs institutionnels et le financement des infrastructures La récession économique aura probablement un impact durable sur le secteur de la gestion de fonds et les stratégies d’allocation d’actifs à long terme des investisseurs institutionnels. D’une part, parce qu’elle met en valeur des stratégies d’investissement plus prudentes et conduit à apporter une attention plus grande à la gestion du risque de portefeuille au cours des prochaines années. D’autre part, parce que dans un contexte de faiblesse persistante des rendements, les investisseurs sont incités à adopter des stratégies plus rémunératrices et à investir dans d’autres catégories d’actifs. Plus fondamentalement, le rôle des investisseurs institutionnels dans le financement à long terme pâtit de la prédilection pour le court terme qui se généralise sur les marchés financiers, mais également des obstacles structurels et politiques, comme les réglementations dissuasives, l’absence de formules d’investissement adaptées, des compétences limitées en gestion du risque et des investissements, des questions de transparence et de viabilité des investissements et l’absence de points de référence, en termes de données et d’investissements, en ce qui concerne des actifs aussi peu liquides que les infrastructures.

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    Bibliographic Info

    Paper provided by OECD Publishing in its series OECD Working Papers on Finance, Insurance and Private Pensions with number 36.

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    Date of creation: 06 Nov 2013
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    Handle: RePEc:oec:dafaad:36-en

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    Keywords: infrastructure; asset allocation; private finance; pension regulation; pension funds; institutional investors; infrastructure policy; infrastructure investment; infrastructure; politique des infrastructures; investissement en infrastructures; investisseurs institutionnels; réglementation des pensions; financement privé; allocation d'actifs; fonds de pension;

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