It was determined that local authorities 'must maximise' the opportunities presented by City Deals during a meeting of the Local Government and Regeneration Committee on 30 November.
The MSP's stated there is 'untapped potential' for Pension Funds to support communities and generate income.
However, the report said a lack of expertise in infrastructure investment means too few Pension Funds are grasping the opportunity to invest to achieve local social or economic impact.
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Committee Convener Kevin Stewart MSP said: "It has been proven time and again that investment in infrastructure is needed to grow a successful economy. All communities across Scotland must have the chance to benefit from this success and the opportunity to grow.
"Whilst there are some risks associated with investing in infrastructure, these can be reconciled given the long-term nature of these investments together with their positive social and economic impact.
"By working collaboratively Pension Funds could maximise their returns, share expertise and reduce investment costs. The returns should also be measured in terms of growth to communities."
In addition, the committee urged councils to maximise the opportunities presented by City Deals to improve local infrastructure.
Mr Stewart added: "On our visit to Manchester the drive, vision and enthusiasm that is vital for City Deals to succeed was apparent.
"City Deals offer unique opportunities to invest in strategic infrastructure projects and we look forward to seeing measurable benefits emerge for communities and the wider surrounding areas.
"However there needs to be careful governance to ensure plans flourish and other areas benefit from good practice."
(LM/CD)
