Super funds ‘unquestionably open’ to taking over more companies

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Fund CIOs say private assets offer diversification and performance benefits, amid predictions the ASX is on track to shrink for the first time since 2005.

But despite the $3.5 trillion sector beingas they outgrow the local bourse faster than anticipated, funds said they were still open to privatisations because of the long-term returns private assets could bring members.

“We’re unquestionably open to taking part in a privatisation where we see compelling long-term value,” Aware Super chief investment officer Damian Graham said, pointing to the fund’s purchase and delisting of digital infrastructure business, Vocus Group, alongside Macquarie in 2021 as proof.He said direct investments in private outfits, such as buying VicRoads and British build-to-rent company Get Living, were “attractive opportunities” to drive returns for members.

“Taking a broader view, the shift of companies from public listing to private ownership is a global trend and there are benefits for equities investors from takeover premiums.”She said the fund was “open-minded” on whether it sought private or listed assets, as the approach that would “generate strong, sustainable long-term returns for members” depended on context.

 

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