How we invest in unlisted assets
24 October 2024
5
min read
We’re here to help you feel confident that with us you have access to professionally managed investment strategies for your money.
We’re one of Australia’s largest super funds. Close to 2.4 million Australians trust us to take care of over $300 billion of their retirement savings.
Our scale and size mean we can invest in a broad range of local, national and global investment opportunities to help us grow members’ super savings and maximise your retirement income.
When you have an account with us, you have access to a wide range of investment options you can choose from or combine.
Unlisted assets
Unlisted assets are included in the asset mix of most of our diversified options. We also offer ‘Unlisted Assets’ as one of our asset class investment options.
Unlisted assets aren’t typically listed on an exchange like the stock exchange. They’re often privately owned and valued or traded less frequently.
How unlisted assets differ from listed asset classes
These are key differences between unlisted assets and publicly traded assets:
| Unlisted assets |
Listed assets |
| Not quoted on an exchange and buying or selling these assets is usually a lengthy process often involving several parties. |
Listed on an exchange, like the Australian Stock Exchange, and so can be easily traded. |
| The large amounts of funds required to purchase unlisted assets generally means investors are institutions e.g. super funds. |
Investors range from institutions such as super funds to ‘Mum and Dad’ investors. |
| Usually valued quarterly, semi-annually or annually. |
Valued daily. |
| Because returns are valued less frequently compared with listed assets, unlisted asset returns can exhibit greater stability. |
Subject to market volatility and views on the underlying security of the stock. |
| Low liquidity, which means they might not be easy to sell. It also means they can attract a higher return since investors seek higher compensation for tying up their capital in less liquid assets. |
Typically highly liquid and easily traded. |
| It tends to cost more to transact in and maintain unlisted assets. |
Buying and selling listed assets like shares is often comparatively cheap. |
Why we invest in unlisted assets
When we invest in unlisted assets, it helps us to build diversified portfolios that aim to deliver strong long-term real returns.
Unlisted assets can make investments less exposed, but not immune, to share market volatility.
Unlisted asset returns
Unlisted asset returns can be higher than many listed asset classes and are often more stable.
This is mostly due to the illiquidity risk premium associated with unlisted assets. This premium reflects additional compensation investors demand for investing in assets that cannot be as readily and easily sold as listed assets. The greater stability is due to unlisted assets being valued less frequently.
Unlisted assets have a different return pattern than other asset classes. This helps diversify returns and reduce risk in an investment portfolio.
In general, we expect our unlisted asset investments to deliver attractive long-term returns and reduce exposure to share market volatility. We expect returns from our unlisted asset investments to make up for the illiquid nature of the assets and the costs of managing these assets.
Types of unlisted assets we invest in
We split unlisted assets into these 4 sub-classes:
We invest in shares in companies that are not traded in public markets. This may include venture capital, growth and buyout strategies. The companies might eventually be listed on stock exchanges or bought by other investors.
Infrastructure refers to the fundamental assets of a society that are required to provide essential services to its population. This may include roads, trains, ports, airports, hospitals, schools, utilities like electricity and water, and digital infrastructure like registries and data centres.
We invest in real estate assets and strategies that may include office buildings, shopping centres, industrial warehouses and residential housing. Investments in property include investment in property operating platforms that both own and operate property assets.
Private debt includes loans and fixed income assets that are not issued or traded in public markets.