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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.


This page describes an investment option available to Self-Managed Super Fund (SMSF) Trustees. Please follow these links to view investment options available to Hostplus superannuation members and Hostplus pension members.

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:
CPI plus 3.0% p.a. on average over 20 years
Pension:
CPI plus 3.5% p.a. on average over 20 years

Investment risk1

Medium to high. (Negative returns expected in between 3 to less than 4 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.
This option may suit Accumulation investors who have a five year plus investment time horizon.
This option may suit Pension investors who have a four year plus investment time horizon.

Minimum suggested investment time frame2

Accumulation:
5 + years
Pension:
4 + years

Asset allocation guidelines

Asset Class

Range

Strategic Asset Allocation Benchmark

Infrastructure

0 – 100%

100%

60%: Growth Assets
40%: Defensive 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.
2. The Minimum Suggested Investment 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.

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

Enjoy unprecedented access to high-performing investments, with scale, expertise and experience of Hostplus.

Balanced Investment Option

Hostplus' Balanced Option is our 'flagship' default investment option for superannuation members. Now, we offer SMSF investors a rare opportunity to share in Hostplus' industry-leading returns through direct investment in our Balanced Option.

Learn more

Indexed Balanced Investment Option

Hostplus’ Indexed Balanced Option is one of the lowest-cost diversified options available in the market today. It employs passive investment management strategies across a mix of growth and defensive assets to target index-like returns for each underlying asset class.

Learn more

IFM - Australian Infrastructure Investment Option

The IFM – Australian Infrastructure Option provides access to a diversified portfolio of Australian infrastructure assets, comprising an extensive collection of ports, airports, roads and utilities. IFM Investors is a globally-renowned Australian investment manager that has been managing infrastructure investments for over 20 years.

Learn more

Property Investment Option

The Property Investment Option provides investors with exposure to comprehensive and diversified portfolios of real property assets across the industrial, retail, residential and commercial sectors. Investments in this option are managed by some of the largest and most experienced investment managers in the domestic and international marketplace.

Learn more

Industry Super Property Trust – Property Investment Option

The Hostplus Industry Super Property Trust – Property Investment Option provides access to a diversified portfolio of Australian property assets across the commercial, retail and industrial sectors. 

Learn more

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