GOLD WINNER: HOSTPLUS
The Hostplus Balanced super fund has consistently ranked as the top-performing balanced fund over one, three, five and seven years for its 1.1 million members.
With $30 billion under management, the fund has a wide range of assets that include 40% in unlisted investments such as property, infrastructure, credit and private equity.
David Elia, CEO of Hostplus, points out that the unlisted property and infrastructure has outperformed low cash and bond rates by 7% over the past financial year.
The fund’s equity and credit asset classes are largely invested along active lines but small amounts are allocated to index managers. He says the active equity managers in developed markets outperformed the index by 3% in the past financial year.
The asset allocation of Hostplus Balanced includes Australian equities (25%), developed markets (20%), emerging markets (8%), direct property (13%), infrastructure (12%), credit (8%), private equity (6%), alternatives such as hedge funds (6%) and diversified fixed interest (2%).
Hostplus has placed $515 million in venture capital. It has $50 million with Artesian, a seed stage venture capital firm that has almost 100 investments including later-stage ventures.
“It is the fund’s diversification that serves to protect our members from market downturns and maximise their returns,” says Elia.
As a long-term investor, Hostplus has invested in quality infrastructure assets such as ports, toll roads, power companies, district courts, water filtration plants, aged-care homes, pipelines and airports, including ones in Melbourne, Sydney, Hobart, Brisbane, Darwin, Alice Springs, Perth, Adelaide, Vienna in Austria and the Manchester Airports Group in the UK.
Second placegetter Cbus Growth also invests in unlisted assets and holds 13% in property and 24% in alternative investments such as infrastructure and private equity.
As well as investing in existing office, retail, industrial and residential property, Cbus develops buildings throughout Australia, providing work for its members. It estimates that it has provided work for 70,000 people on its building projects.
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