“The Equity Swap is another positive step in MTAA Super’s successful involvement with SYD and Sydney Airport since privatisation,” MTAA Super chief executive Leeanne Turner said.
“We remain confident in our investment and look forward to having a long-term economic exposure to Sydney airport’s excellent business model through our SYD securities.”
The Fund acquired an interest in Sydney airport when it was privatised in 2002, but has been involved in infrastructure acquisitions since 1998.
“The transaction further strengthens the liquidity position of the Fund while remaining a part owner of a high-quality, essential infrastructure asset. The Fund considers infrastructure to be an attractive asset class to harvest returns for members as a long-term investment," MTAA Super chairman John Brumby said.
Sydney airport, which MTAA state is an “integral component of the Fund’s infrastructure portfolio”, has produced an internal rate of return since 2002 of 20.4 per cent per annum.
“This announcement fits very well with MTAA Super’s overall investment objective: to maximise each member’s return during their working and retirement life, while protecting their accumulated retirement savings from large fluctuations during the economic cycle. We aim to deliver solid returns with an acceptable level of risk,” Mr Brumby stated.
