POWERED BY MOMENTUM MEDIA
Infrastructure still suits super: KPMG
Infrastructure remains a genuine investment opportunity for superannuation funds, according to KPMG infrastructure leader, Julian Vella.
Vella told this week's Australian Institute of Superannuation Trustees (AIST) conference on the Gold Coast that the opportunities existed because the traditional sources of financing had dried up.
He said Australia was considered to need around $750 billion in infrastructure in the next 10 years - a "huge infrastructure requirement that won't go away." Vella acknowledged that while infrastructure as an asset class was regarded as low risk and stable, this could not be said of all segments of the asset class.
"Some segments have different risk profiles," he said.
Vella said it was these differing profiles, which accounted for some funds preferring established "brown field" infrastructure to new "green field" projects.
He said the overall picture for infrastructure had changed post the global financial crisis because capital was no longer low cost.
"Debt providers now have a different view," he said.
Recommended for you
Jim Chalmers has defended changes to the Future Fund’s mandate, referring to himself as a “big supporter” of the sovereign wealth fund, amid fierce opposition from the Coalition, which has pledged to reverse any changes if it wins next year’s election.
In a new review of the country’s largest fund, a research house says it’s well placed to deliver attractive returns despite challenges.
Chant West analysis suggests super could be well placed to deliver a double-digit result by the end of the calendar year.
Specific valuation decisions made by the $88 billion fund at the beginning of the pandemic were “not adequate for the deteriorating market conditions”, according to the prudential regulator.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.56 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.06 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.81 3 y p.a(%)
