Hostplus has followed the lead of other industry superannuation funds and devalued its unlisted investments, acknowledging the COVID-19 crisis has struck its infrastructure and property assets.
Hostplus has devalued assets within its property and infrastructure portfolios by a range of 7.5 per cent to 10 per cent, saying it depended on the individual investment and the age of its most recent independent valuation.
Further, the fund’s private equity and venture capital investments have also been downgraded by 15 per cent on average.
Hostplus stated while the full impact of the COVID-19 pandemic is yet to be understood, it is clear that infrastructure and property assets such as airports, toll roads and shopping centres have been materially affected.
“Asset devaluations are being experienced across all sectors of the economy,” the fund stated.
“However, the current decreases in the valuations of Hostplus’ unlisted asset investment are, based on our analysis, less extreme compared to the current heightened volatility being experienced in listed markets.
“It is long-term price stability which is a key positive attribute of our strategic investment in unlisted assets. These revaluations have already been included in the fund’s unit pricing and are reflected in account balances.”
Hostplus has said it will continue to monitor investment markets closely to ensure the pricing of its unlisted assets remains appropriate.
The decision has followed AustralianSuper and IFM Investors similarly shaving the values of their unlisted assets in response to the virus-shaken market conditions.
AustralianSuper cut its unlisted assets value by 7.5 per cent with its investment portfolios taking a hit – the fund’s balanced option saw a 2.2 per cent reduction in value.
Meanwhile, IFM slashed its values for a number of its Australian assets by 7.56 per cent on average.
Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth.
Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio.
You can contact her on [email protected].