$125 Billion Manager Says Asia Investors Are Flocking to Infrastructure
- Asian pension funds and insurers consider mezzanine debt
- Investors poured $413 billion into infrastructure last year
Concrete sections stand at the construction site of the Hong Kong-Zhuhai-Macau Bridge (HZMB) in Hong Kong, China, on Tuesday, March 28, 2017.
Photographer: Billy H.C. Kwok/BloombergRecord low yields and negative interest rates are pushing investors from Japan to China into funding infrastructure projects across the globe to bolster ailing income, according to Australia’s biggest listed wealth manager AMP Ltd.
Asian pension funds and insurers are ramping up investments in infrastructure debt around the world including mezzanine offerings as they seek to combat waning returns from traditional fixed income assets, said Kerry Ching, managing director for Asia of the company’s investment arm, AMP Capital Investors. The number of Asian investors in AMP’s infrastructure debt strategies has more than tripled since 2012.