Investments in unlisted infrastructure will be key a focus for Aware Super as the fund opens its first office outside Australia later this year.
Aware Super’s Head of Infrastructure, Mark Hector, said the fund was likely to invest another circa several billion dollars in the asset class in coming years, and a significant portion would be targeted to be deployed offshore.
The fund will later this year open its first overseas office, in London, as part of its strategy to diversify geographically and provide exposure to different assets on a direct basis. Unlisted infrastructure has played an important role in helping the fund deliver strong long-term returns for its 1.1 million members, Mr Hector said.
“It also has strong appeal in this environment because it has a great combination of growth and defensive qualities, and revenue streams generally correlated with inflation,” he said.
Aware Super has more than $150 billion under management, with a target of $250 billion by 2026.
Its infrastructure portfolio weighs in at circa $15 billion now. About $10 billion of that is invested in Australia, and assets in Europe and North America account for most of the balance.
The fund’s infrastructure portfolio was accordingly likely to grow by around $10 billion over the next circa 5 years, he said.