Media Super is boosting its infrastructure investment efforts with members having access an Unlisted Infrastructure option in their super fund from October 1.
Australian Assets included in the Unlisted Infrastructure option include Melbourne and Brisbane airports, Melbourne’s Southern Cross Station and Sydney’s Eastern Distributor (M1). Internationally, the portfolios currently include Vienna Airport, Indiana Toll Road and Anglian Water in the UK. From time to time, these portfolios will change to remain in line with the investment objective of the option.
The long-term investment target of the option is to have 80 per cent of the portfolio invested in Unlisted Infrastructure and 20 per cent in cash, with a rate of return target of CPI plus 4.5 per cent.
As part of its plans to beef up infrastructure the fund will look to expand exposures to renewable energy assets in Australia.
Media Super invests in infrastructure through IFM’s infrastructure portfolios and the move to boost renewables exposures comes partly as a result of the Pacific Hydro sale by IFM at the end of 2015.
Graeme Russell, chief executive of Media Super, told Investment Magazine the fund would like “to make that back up and even increase it”.
“With a mid-sized fund like ours we would normally be looking at doing that through pooled funds,” said Russell. “We’ve already got some investment in renewables through other pooled funds and we will probably talk to IFM about that, [though] we will talk to other managers as well.”