As a fund that manages $180 billion in assets, Aware Super is always on the lookout for new opportunities and, at the moment, it is seeing a greater pipeline across a number of asset classes.
Speaking to InvestorDaily’s sister brand, Super Review, the fund’s head of investment strategy, Michael Winchester, said infrastructure is presently of particular importance for the fund.
According to Winchester, Aware Super has acquired a number of assets with strong tailwinds in the digital infrastructure space.
“I can see us doing more here in the coming years,” he said.
Aware’s infrastructure portfolio currently spans a number of sectors, including data and technology, hospitals, renewable energy, and agriculture.
In Australia, its holdings include Sunshine Coast University Hospital, Sydney International Convention Centre, and Australia’s largest operational wind farm, Stockyard Hill Wind Farm, among others.
Looking overseas, its holdings include the likes of Forth Ports, one of the largest port operator groups in the UK, as well as Switch Data Centres in the US.
Most recently, the fund announced a minority stake in European fibre network euNetworks, marking the fund’s inaugural infrastructure deal to originate out of its London office.
At the time, Aware’s head of infrastructure, Mark Hector, highlighted “strong industry tailwinds arising out of the acceleration of AI innovation and adoption”.
“This is also a strong opportunity for us to further diversify our global digital infrastructure holdings into Europe,” he said.
Infrastructure has become a popular addition in super portfolios, with a recent Morningstar report noting industry funds allocate over 20 per cent to unlisted asset classes, with unlisted infrastructure comprising the majority of industry fund investments (10 per cent).
This was followed by unlisted property and unlisted equity (5 per cent each), and private debt at about 1 per cent.
Earlier this year, Playfair Asset Management co-chief investment officer Simon Hudson also highlighted such assets are poised to play a larger role in portfolios moving forward, given its risk/return profiles, long-term nature, and income-generating potential.
