This presentation by Raffaele DELLA CROCE was made at the 7th Meeting on Public-Private Partnerships held on 17-18 February 2014. Find more information at http://www.oecd.org/gov/budgeting/ppp.htm
2024 02 15 AZ GOP LD4 Gen Meeting Minutes_FINAL_20240228.docx
OECD, 7th Meeting on Public-Private Partnerships - Raffaele DELLA CROCE
1. INSTRUMENTS AND INCENTIVES TO
ATTRACT INSTITUTIONAL INVESTORS
IN INFRASTRUCTURE
7th Annual Meeting of Senior PPP Officials
February 17th 2014
Raffaele Della Croce
Lead Manager, LTI Project,
Financial Affairs Division - OECD
raffaele.dellacroce@oecd.org
2. Institutional investors Landscape
Inst Inv AUM have been growing to USD 83tr AUM in OECD countries
Assets held by Institutional Investors in the OECD area, 1995-2012
Source: OECD
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3. Pension Funds’ LTI: Survey Oct 2013
Large Pension Funds Survey
2013..
North America
Ontario Municipal Employees’ Retirement System (OMERS) - Canada
Canada Pension Plan Investment Board (CPPIB) - Canada
Ontario Teachers Pension Plan (OTPP) – Canada
Social Security Trust Fund –USA
Calpers - USA
OPERS- USA
PRIM -USA
Europe
Zilverfonds –Belgium
ATP – Denmark
PFA –Denmark
Pension Reserve Fund – France
AGIRC-ARRCO –France
National Pen Res Fund –Ireland
Fonchim –Italy
Cometa –Italy
ABP -Holland
PFZW - Holland
PMT - Holland
Governmenr Pension Fund Global –Norway
Demographic Reserve Fund –Poland
Social Security Stabilisation Fund – Portugal
BPI – Portugal
Social Security Reserve Fund –Spain
Caja Madrid –Spain
Endesa –Spain
Fonditel –Spain
Ap1-Ap6 –Sweden
University Superann. Scheme (USS) -UK
BT Pension Scheme - UK
Asia - Australia &NZ
Central & South America
Sustainability Guarantee Fund –Argentina
Banco do Brasil Employee Pension Fund (PREVI) - Brazil
Pension Reserve Fund – Chile
AFP Provida – Chile
AFP Horizonte – Colombia
Bancomer Afore – Mexico
IMSS Reserve – Mexico
AFP Horizonte –Peru
Africa
Nigeria
Government Employees
Pension fund of South
Africa (GEPF)
National Social Security Fund - China
Goverment Pension Investment Fund – Japan
Pension Fund Association - Japan
National Pension fund – Korea
AustralianSuper – Australia
SunSuper - Australia
Future Fund – Australia
New Zealand Superannuation Fund – New Zealand
..Investors for more than US$9tr AUM spread
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across regions
4. Pension funds Asset Allocation
Average asset allocation of Large Pension Funds (LPFs) and
Public Pension Reserve Funds (PPRFs), 2012
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8. Barriers to Infrastructure Investment
Problems with
government support
for infrastructure
projects
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Lack of political commitment over the long-term
Lack of infrastructure project pipeline
Fragmentation of the market among different levels of
government
Regulatory instability
High bidding costs
Lack of investor
capability
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•
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Lack of expertise in the infrastructure sector
Problem of scale of pension funds
Regulatory barriers
Short-termism of investors
Problems with
investment conditions
•
Negative perception of the value of infrastructure
investments
Lack of transparency in the infrastructure sector
Mis-alignment of interests between infrastructure funds
and pension funds
Shortage of data on infrastructure projects
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Source OECD
10. OECD LTI Project
What does long-term investment mean and why does it matter?
• “Patient”,“Engaged”,“Productive”
capital
• LTI investors/LT assets
• NB: Short Term not bad
• OECD, APEC, G20 relevance
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11. OECD LTI Project - Structure
Deliverables
Structure: Modules
Data
Collection on
Institutional
Investors
Data Collection
Infrastructure
Investment
Regulation
Policy Analysis
Governance
Events
Emerging
Markets
Financing
OECD added value
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•
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Institutional Investors expertise (Committees, IOPS)
Data collection national level
Other work from OECD Directorates/divisions (ENV, GOV, DEV etc..)
Network of stakeholders (i.e. Institutional investors, Asset managers,
Universities, Investors Group)
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12. OECD LTI Project – 2012-3 Events
Feb 2012
LAUNCH
APEC – Indonesia
August 2013
OECD/ Euromoney
Infrastructure financing
Summit
29 May 2013
G20/OECD
LTI Roundtable
Paris
28 May 2013
Launch Event
Paris
February 2012
Long-Term
Investment
Project
OECD/APG/RiskLab
LTI and Regulation
Amsterdam
Feb 2013
ADB/OECD /ICC
Workshop on
bankability of PPPs
Feb 2013
2013
OECD Forum
Paris
May 2012
G20/OECD
Green Growth
Conference
Paris
May 2012
OECD/IOPS
Private Pensions
Global Forum
Conference – Chile
Oct 2012
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13. Next Steps
• Implementation of High Level Principles:
priority areas for 2014
• Analysis of Government and Market Based
Instruments and incentives for LTI
• OECD LTI project research
• Network of Investors
www.oecd.org/finance/lti - OECD long-term investment project
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