Australian industry super funds have done well out of unlisted infrastructure as an asset class. While it's fair to ask whether this record will continue in the future with more competition for these assets, or whether the lack of liquidity in these assets means we have not been paid a sufficient premium to hold them, in the one path of history we have experienced it has been a successful strategy.
HostPlus have introduced a new investment allowing access to these assets and the expertise these funds have built up with the IFM – Australian Infrastructure option.
With investment management costs of 0.45% p.a. this is the most reasonably-priced way yet to access unlisted infrastructure assets for individuals who want to customise their asset allocation (many industry MySuper funds already provide access for those who want a single all-in-one investment, although most are more expensive than this option).
Note also that the investment is capacity constrained, the "option may be closed to new investors if a cap of 3% of total funds under management for the Fund is reached". While I'm not switching to HostPlus to access the fund at this stage, it seems a good way to diversify further for those of us with a degree of home bias and a desire to keep costs low. I may even recommend it to my Mum.
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