Westscheme buys infrastructure, remains alert

By Christine St Anne
Mon 04 Feb 2008

Perth-based industry fund Westscheme has allocated more than $90 million to global infrastructure.

Perth-based industry fund Westscheme has allocated more than $90 million to global infrastructure.

The fund has invested $46.1 million in United Kingdom water company Southern Water and $47.7 million in United States company Carrix.
"We are very fortunate to make investments in these mature-type infrastructure assets. These sorts of investments are particularly reassuring in the current uncertain market," Westscheme chief executive Howard Rosario said.

Rosario said the fund's exposure to collateralised debt obligations (CDO) had been a "painful experience", but only represented a small portion of its investment portfolio.

The $2.8 billion superannuation fund has $71.6 million invested in CDOs with $2 million of that in the US sub-prime market.

"Any investment we undertake is analysed against our drawdown exposure limit. If potential investments are more than this limit then we do not invest in those assets," Rosario said.

He said despite the "huge adjustment" from the January correction in the market, Westscheme made the top five in SuperRating's latest fund performance tables.

"The lesson to learn from these market conditions is stay diversified and stay alert," he said.

"Our investment strategy is set for the medium to long term. We can't afford to get aggravated by short-term events."

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