Can the Water Sector Benefit From Global Institutional Investors?

Over the past five years, a new pioneering segment of select Canadian, Australian, and Dutch pension funds have significantly built up their infrastructure investment positions, with allocations accounting for as much as 20% of an entire fund’s portfolio. To date, pension funds, globally, only invest 1% of their capital assets into infrastructure. Although, given the growing demand for project finance and increasing pension fund interest in infrastructure investments, the water sector is expected to benefit from institutional investor’s interest in key markets. 

In this Research Note:

• Pension fund water investments grow incrementally through varied investments
• International water investment risk poses challenges for foreign direct investments
• Water sector benefits from trends in greening infrastructure investments