The LGIAsuper trustee has revalued its unlisted assets, 5 per cent lower for property assets and 3 per cent less for infrastructure assets.
The change was made on Tuesday and is now reflected in members’ account balances.
LGIAsuper stated most of its members invest in the MySuper option, where it estimates the reduction in returns will be 1 per cent.
The predicted decrease to returns for the diversified growth option is also 1 per cent, while the property option has been projected to see a 4 per cent drop, with listed real estate investments taking up 20 per cent of the option.
The fund stated its portfolio includes unlisted assets across property such as housing, commercial offices, shopping centres as well as infrastructure (ports, airports, rail networks).
Typically it revalues the assets quarterly or half-yearly.
“During a market downturn, unlisted assets are an essential part of our investment mix because they are not as volatile as listed assets,” LGIAsuper said.
There has been speculation around the liquidity of funds as the early super release has been implemented, particularly concerning their allocations in illiquid and unlisted assets.
But First State Super chief investment officer Damian Graham dismissed the concerns around unlisted assets, calling them “simplistic”.
His fund alongside AustralianSuper, IFM Investors and Hostplus have all decreased the valuations of their unlisted assets.
Sarah Simpkins
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].
