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:
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.