Question: There are quite a few experts on the Switzer program and the Sky Business Channel who advocate spending on infrastructure projects. There is also a huge sum of money being managed by superannuation funds (both nationally and internationally).
Would you please provide some advice on some of the best ways for an SMSF to invest in infrastructure projects?
Answer: Thanks for the question about the best ways for an SMSF to invest in infrastructure assets.
It is not easy to invest directly as most SMSFs would not qualify as a ‘wholesale investor’ and would be ineligible to receive any information memorandum. In any event, most projects just aren’t interested in small investors.
There are two ways to invest indirectly. Firstly, you can invest in the listed “infrastructure” companies on the ASX. These tend to be single industry focussed (eg. roads, power stations or airports etc), and often have a single or small number of assets.
The listed companies that can be classified as “infrastructure” include: APA Group (APA); Asciano Group (AIO); Australian Infrastructure Fund (AIX); DUET Group (DUE); Envestra Limited (ENV); Infigen Energy (IFN); Macquarie Atlas Roads (MQA); MAP Group (MAP); Qube Holdings Limited (QUB); Redbank Energy Limited (AEJ); SP AusNet (SPN); Spark Infrastructure Group (SKI); Sydney Airport (SYD); and Transurban Group (TCL).
Secondly, many of the major fund managers (AMP, Macquarie, Colonial First State, Magellan etc) have unlisted infrastructure funds.
Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regards to your circumstances.
