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:
Infrastructure |
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Target return |
Accumulation: |
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Investment risk1 |
Medium to high. (Negative returns expected in between 3 to less than 4 out of every 20 years) |
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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. |
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Investment objective |
This option consists of tangible infrastructure assets and aims to achieve income returns and capital growth over the longer term. |
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Minimum suggested investment time frame2 |
Accumulation: |
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Asset allocation guidelines |
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Asset Class |
Range |
Strategic Asset Allocation Benchmark |
Infrastructure |
0 – 100% |
100% |
60%: Growth Assets |
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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. |