Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/240838 
Authors: 
Year of Publication: 
2021
Series/Report no.: 
Texto para Discussão No. 2644
Publisher: 
Instituto de Pesquisa Econômica Aplicada (IPEA), Brasília
Abstract (Translated): 
This study aims to quantify the potential financing estilmates from institutional investors - pension funds, insurance companies, investment funds and sovereign wealth funds - from global (OECD) and domestic markets to infrastructure in Brazil. Institutional investors are not homogeneous, and have a wide range of objectives, characteristics and structural factors that influence their investment decisions, in addition to regulatory restrictions. The model covers: i) estimation of assets under management, considering structural restrictions on liquidity, size and profile by type of investor, which reduces the current volume by at least 50%; ii) increasing of 2% to 3% in portfolio allocation to infrastructure asset class for the next decade; iii) assets under management growth of 6% pa according to the historical data; and iv) Brazil's market share of 2.5% from global resources available for infrastructure. The potential financing for Brazil infrastructure from institutional investors corresponds of US$ 9 billion to US$ 17 billion pa in the next decade, equivalent of 0.5% to 0.9% of 2019 GDP. That figure, given the current investment levels of about 2% of GDP, leads to a potential flow of about 3% of GDP, a considerable amount, but still below the target of 4% of GDP (about US$ 70 billion per year). We emphasize that this exercise provides values that are justified only as an estimate of the order of magnitude and should be viewed sparingly and according to the hypotheses considered.
Subjects: 
institutional investors
infrastrucuture financing
infrastructure asset class
JEL: 
G38
L51
F21
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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