Pension funds globally are pulling back back from infrastructure investments in a worrying trend for cash-strapped western governments seeking to attract private money to the sector.

In the past five years until the end of April 2012, pension funds around the world have reduced their allocation, or deployment of capital, to such $49.46bn, according to research by Infrastructure Investor, a publication for infrastructure finance and investment. The news is a blow to European governments looking to revive their hamstrung economies by wooing pensions funds and other institutional investors to infrastructure investments.

 Financial Times