Infrastructure – Deciding Matters

Dr Larry Beeferman & Dr Allan Wain

This study builds upon the understanding of infrastructure developed in our paper “Infrastructure: Defining Matters” with the aim of translating it in practical terms using a more detailed formulation of the schematic for pension fund investment decision-making which we outlined in that paper. The method for our doing so is to use as a reference an in-depth review of the decision-making process of one of the leading, if not the leading U.S. public sector pension fund on many matters, including infrastructure investment. The text proceeds as follows: First, we determine how the fund articulates what it understands infrastructure to be or entail. Second, we review what it states are its strategic objectives for infrastructure investment. Third, we canvas its stated perceptions or beliefs as to the financial characteristics of infrastructure investments. Fourth, we review in extensive detail the approaches and parameters according to which the fund seeks to achieve those strategic objectives.

Dr Larry Beeferman
Director Pensions and Capital Stewardship Project Head of MEEMA (Middle East, Emerging Markets, Asia

Dr Allan Wain
Labor and Worklife Program, Harvard Law School, Hastings, Harvard University