AustralianSuper hikes rates after wave of infrastructure purchases

The eight options whose investment costs have risen are: high growth (0.60% to 0.67%), balanced (0.63% to 0.73%), socially conscious (0.68% to 0.73% ), balanced conservative (0.58% to 0.67 percent), stable (0.38 percent to 0.55 percent), diversified index (0.11 percent to 0.14 percent) and diversified fixed interest (0.34 percent to 0.37 percent).

The changes came into effect on July 9 and were made after AustralianSuper calculated its actual investment costs for FY21, according to the letter.

An AustralianSuper spokesman did not respond to questions about the full value of the fare increases or the stamp duty increase during FY22.

AustralianSuper chief investment officer Mark Delaney increased investments in unlisted assets (private equity, infrastructure and direct property) from $28bn in June 2021 to $73bn nearly a year later.

That’s a 52 percent increase and made unlisted assets a third of AustralianSuper’s $261 billion total.

His taste for unlisted assets has drawn valuation scrutiny. After this week’s rate hike, costs for investors will join the list.

Last year, AustralianSuper paid $1.9 billion to buy a 70 per cent stake in Australia Tower Network (ATN), which included Optus’ 2,312 mobile towers and rooftop sites. Six months later, in April, ATN paid $3.5 billion for Macquarie’s national mobile telecommunications tower company, Axicom. AustralianSuper also increased its stake in WestConnex last year.

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