Aus & NZ: AustralianSuper withdraws from ICG fund

28 February 2018 - 12:00 am UTC

AustralianSuper has withdrawn its multimillion dollar investment in Infrastructure Capital Group’s Energy Infrastructure Trust, Inframation understands.

It is unclear when it pulled its investment, but sources familiar with the matter said some of its stakes in ICG assets had since been reallocated to other investors in the fund.

One source suggested the move was part of AustralianSuper’s plan to increase the level of investments managed internally. AustralianSuper manages more than AUD 5.6bn (USD 4.37bn) in infrastructure internally. Across all asset classes, it has an internal management target of 30% for 2018 and 50% by 2021.

A spokesperson for AustralianSuper declined to comment.

AustralianSuper’s last annual report for its 2016-17 financial year released in July 2017 reported it had AUD 259.4m (USD 202m) invested in ICG.

It is understood the money was allocated to ICG’s Energy Infrastructure Trust. This primarily has investments in renewable and gas generation assets, but also has stakes in Newcastle Coal Terminal, Flinders Ports in South Australia and Gas Pipelines of Victoria.

As of 31 December funds under management for EIT was AUD 1.22bn.

Across all asset classes, the super fund has invested more than AUD 119bn to date. Its infrastructure allocations range from 7% to 13% across its various portfolios.

The allocation to ICG was AustralianSuper’s smallest stake with an external infrastructure manager.

The super funds also invests more than AUD 6bn in infrastructure equity through IFM Investors. IFM itself has been selling out of investments in energy generation in Australia due to policy uncertainty in the sector, but it is not clear whether that is a factor in AustralianSuper’s move.

Macquarie Specialist Asset Management is its other external infrastructure manager with more than AUD 560m.

ICG declined to comment.