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Industry funds talk infrastructure with Mike Pence

Australian industry super funds have met personally with Vice President Mike Pence in an effort to expand their infrastructure investments in the US.

A delegation of executives from the industry super movement met with Mr Pence and US Secretary of Commerce Wilbur Ross on Wednesday (Australian time).

Industry funds have publicly stated their intention to cooperate with the Trump administration on its massive infrastructure investment plans.

The delegation was headed by Brett Himbury, CEO of IFM Investors, a fund manager owned by 28 industry funds; David Whiteley, CEO of lobby group Industry Super Australia; and Mark Vaile and Peter Collins, directors of industry fund HostPlus.

Any deals the funds make in the US could flow through to the pockets of regular Australians saving for retirement.

IFM Investors CEO Brett Himbury said that while his company has “ample capital to invest in Australia”, the Trump administration’s infrastructure agenda “could allow us to significantly increase investment in the US”.

“Our focus is on private sector investment in infrastructure, but any time that you invest in infrastructure, you effectively agree a partnership with the government – whether it’s a federal government, a state government, or a local municipality – while providing local communities access to well-managed and well-maintained roads, train stations and airports crucial to their everyday lives,” Mr Himbury said in a statement.

Industry fund members have already invested in US infrastructure through IFM Investors’ acquisition of ITR Concession Company, which operates the Indiana Toll East-West Road – a deal negotiated between Mr Himbury and Mr Pence when he was Indiana state governor.

Following that deal, ITR Concession Company agreed to invest $US200 million in upgrading the road, which covers 250km of northern Indiana from the Ohio state line to the Illinois state line.

Stephen Anthony, chief economist at Industry Super Australia, has previously called on the Australian government to follow the example set by Mr Pence when he was governor by partnering with pension funds to create local jobs and reinvigorate local public assets.

“Mike Pence is rightly proud of this achievement in a country that has struggled with the notion of privatisation and has a decaying public infrastructure stock,” Mr Anthony said last year.

“The hope is that the Australian superannuation industry can achieve the same level of engagement with the federal government.

“Deals like Indiana Toll Roads and the NSW based Ausgrid should prompt governments to consider thinking outside the box on how they can partner with super funds to unlock stronger trend economic growth and higher investment returns.”

* The New Daily is owned by a group of industry super funds

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