Australian investment fund, Macquarie Group, announced yesterday the launch of its new $408 million fund which will make massive Mexico investment in infrastructure.

Macquarie said they had launched the "Macquarie Mexican Infrastructure Fund" with $59 million of their own money, together with another $81 million from the Mexican government and $268 million from Mexican pension funds.

In what is the first managed fund in Latin America, the focus is on investment opportunities in Mexican infrastructure projects. Macquarie said the Mexico investment fund will target opportunities across roads and rail, airports and ports, water and wastewater, energy and utilities as well as social and communications infrastructure.

Mark Ramsey, Executive Director and President of Macquarie Capital in Mexico, said: "[the new fund] is an attractive investment opportunity that provides Mexican and international institutions with a vehicle to invest in a domestic infrastructure portfolio and contribute to the nation building goals set out in the government's infrastructure plan.”

Macquarie expects the fund could swell to as much as $1.2 billion and said that the amount of domestic Mexico investment, from the Mexican government and pension funds, shows confidence in the fund's concept and in Mexico's infrastructure development plans.

Ramsey said the fund should give annual returns of 13-17%, and represents a relatively low-risk option for pension funds looking for stable long-term investments.

The commitment of Mexico investment capital from Australia is just the latest in a rush of foreign companies committing to business and investments in Mexico. As the Mexican economy comes back from the financial crisis of 2009 it is fast becoming one of the most desirable emerging market economies for foreign investors to target.

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