Infrastructure Investment Option
Hostplus' infrastructure investments are selected to build a well-diversified global portfolio of managers and assets, which offers a strong mix of cash yield and capital growth.
Additionally, Hostplus uses its scale and expertise to identify and secure scarce and high-value assets, which it can co-invest directly in. This helps to reduce costs and allows additional exposure to high-quality assets that will continue to drive returns over the long-term.
The Infrastructure portfolio - and infrastructure investments more generally - typically exhibit the following characteristics, which combine to make them attractive for long-term, patient capital investors:
- Capital intensive and typified by stable, predictable income flows over a long time frame
- Provide a level of inflation protection with revenue directly or indirectly linked to inflation and economic growth
- Typically long-term projects (e.g. 50+ years in some instances)
- Provide essential services to the community
- Monopolistic characteristics with high barriers to entry
Strategic Asset Allocation
|
Infrastructure |
||
|---|---|---|
|
Target return |
Accumulation: |
|
|
Investment risk1 |
High (Negative returns expected in between 4 to less than 6 out of every 20 years) |
|
|
Investment style |
Long-term direct investment option that invests in tangible infrastructure assets, such as airports, seaports, toll roads, renewable energy and utilities, both within Australia and globally. |
|
|
Investment objective |
This option consists of tangible infrastructure assets and aims to achieve income returns and capital growth over the longer term. |
|
|
Minimum suggested investment time frame2 |
Accumulation: |
|
|
Asset allocation guidelines |
||
|
Asset Class |
Range |
Strategic Asset Allocation Benchmark |
|
Infrastructure |
0 – 100% |
100% |
|
55%: Growth Assets |
||
|
1. The level of investment risk is based on an industry-wide Standard Risk Measure. It shows the number of expected negative annual returns over a 20-year period. |
||
Investment Managers as at March 2019:
- Campus Living Funds Management Limited
- Colonial First State Property Limited
- Capella Management Services Pty Ltd
- First State Investments (UK) Limited
- IFM Investors Pty Ltd
- Industry Funds Management Pty Ltd
- First State Investments (UK) Limited
- QIC Investments Pty Ltd
- H.R.L Morrison & Co Limited
