The $1.6 billion industry fund BUSS(Q) is finally getting close to its infrastructure target allocation following a new appointment.
BUSS(Q) awarded a $30 million mandate to the ANZ Energy Infrastructure Trust in February. David O’Sullivan, chief executive at BUSS(Q), said the fund had been progressively increasing its infrastructure allocation over the past few years. The benchmark was raised from 9 to 11 per cent 18 months ago, but the fund is yet to reach that target. “;We’ve been chasing our benchmark weight for a while – Australian infrastructure assets have been highly contested and overpriced. “;ANZ have gained access to a lot of clean energy deals without much competition, and we see a good potential for upside with its carbon credits.”; BUSS(Q)’s main exposure to infrastructure over the past 10 years has been through Private Capital Group. The fund made commitments to Macquarie Global Infrastructure Fund No. 3 and Industry Funds Management 12 months ago, but due to the queue of investors, Macquarie has only recently begun to draw down on BUSS(Q)’s commitment, while IFM is yet to touch it.
The biggest risk many super fund members face is not investment volatility but rather not accumulating enough to live on in retirement. Australian Retirement Trust head of investment strategy Andrew Fisher takes Investment Magazine behind the scenes of a migration that saw 1.4 million members moved to a higher-risk, higher-return investment strategy, designed to help them accumulate more at retirement.
Simon HoyleSeptember 12, 2024
