Investing directly or indirectly in infrastructure may be an appropriate option for social security reserve funds. The social security institution ensures that there is appropriate oversight of any investment in this asset class. The social security institution ensures that management has the necessary expertise and skills to ensure that appropriate investment choices are made with respect to the mission and objectives of the institution. In investment decisions, the characteristics specific to this asset class should be considered, in particular the different types of risk including construction risk and management of resulting income streams, as well as liquidity risk, event risk, and political/regulatory risk, all of which may be heightened relative to other investments.

The different risk management challenges require certain governance expertise not normally needed for other asset classes including the involvement of third parties in the investment management process.