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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

Infrastructure - Summary:

  • Investment objective: CPI plus 3.0% p.a. over 20 years Investment risk: High (negative returns expected in between 4 to 6 out of every 20 years)
  • Investment style: Long-term direct investment option that invests in infrastructure assets, such as airports, toll roads, power plants and utilities, both within Australia and globally.
  • Minimum suggested investment time frame: 5+ years

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. 2. The minimum suggested time frame is based on the risk and return profile of this option. The time frame considers volatility and the likelihood of negative annual returns in any one year.

Strategic Asset Allocation

SAA Benchmark
 Growth assets  50%
 Defensive assets  50%

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

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