Q: Is IPIF Core Fund a hedge fund?
A: No. IPIF provides investors with access to real, concrete investments. It’s a niche fund-of-funds that allows you to put your money into income-generating core infrastructure exposures like airports, seaports, and utilities.
Q: How much does investing in the IPIF Core Fund cost?
A: IPIF charges 0.65% to manage your investment, but we don’t receive performance fees. There are some additional charges paid to service providers and, if our underlying funds perform, they receive a performance fee. Call us to find out the costs for your specific case.
Q: How liquid is my money?
A: We’re making long-term, unlisted investments so your money isn’t as liquid as it would be, say, in exchange listed stocks and bonds. Our goal is to get your money back to you within three years, if you wish to redeem.
Q: How much should I invest?
A: It depends on your goals, the composition of your portfolio, and your risk tolerance. In our view, balancing shorter-term liquid investments with long-term stable investments like the Core Fund is worth considering.
Q: What are the risks?
A: Market Risk: All investment markets are subject to many different factors including: economic conditions, regulatory (government and nongovernment) change, market sentiment, local and international political events, environmental and technological issues. These and others, in isolation or combination, will have different impacts on different investments at different times.
The Underlying Funds will be exposed to universal risks of the relevant sector or asset market. Any losses arising from any of these risks may be greater than those of the relevant sector or market.
Liquidity Risk: Unlisted infrastructure has a high degree of illiquidity. There is no secondary market for Units in the Fund although applications for redemption may be made in accordance with several liquidity mechanisms. These liquidity mechanisms broadly reflect the liquidity terms currently applying to the Underlying Funds. There is no facility for Units to be bought back by the Trustee, Manager. Or any other person. Notwithstanding these liquidity provisions, it should be emphasised that the Fund is to be regarded as an illiquid investment and there is no obligation on the Trustee to provide for liquidity and there is no facility for Units to be bought back by either the Trustee, the Manager or any other person.
Q: Is the IPIF Core Fund available outside of Australia?
A: Yes. To invest in the IPIF Core Fund from outside Australia, you simply need to meet the definition of an “Australian wholesale investor.” And you may need to speak to your accountant or tax advisor before pursuing the investment.
Q: Why don’t you offer listed infrastructure investments?
A: Listed infrastructure behaves in a different way to unlisted infrastructure, and it’s not where our skill set lies. In addition, most investors can easily access a number of the reputable listed infrastructure funds in the market, as their minimum investment thresholds are lower than in the unlisted space. We want to provide you with access to stuff that you simply can’t get. Overtime, we may bring you some more of this, so watch this space!
Q: What are you thinking about adding to the fund next?
A: There is nothing on the immediate horizon, however we’re constantly reviewing funds in the unlisted infrastructure space. We meet managers regularly with managers for both emerging funds as well as more established funds.
Q: What happens if an asset deteriorates?
A: This does happen from time to time. However, having diversified exposure across 32 assets in IPIF Core Fund means there is a degree of protection against a single asset deteriorating.
Q: Is unlisted infrastructure a good investment?
A: We think so. These assets are real, concrete investments that we as consumers and a society require to function. Why not benefit from the infrastructure we all use on a daily basis?
Q: Is infrastructure a better investment than property?
A: Not so much better, as different. Essential, core infrastructure – such as airports, seaports, roads, and railways – is well diversified and a great complement to the other investments in your portfolio. While real estate is valued for its exciting growth and income potential, infrastructure attracts those looking to add stability with a diverse, long-term growth investment.
Q: What is an unlisted infrastructure fund?
A: An infrastructure fund buys stakes in assets such as tollroads, airports, seaports, and utilities like energy and water companies. The funds we invest in are typically “perpetual vehicles” that acquire assets over many years. The intention of most funds is to build a diversified portfolio of assets to provide investors with long-term sustainable growth and consistent income.
Q: Are the assets in the IPIF Core Fund all in Australia?
A: Mostly. Approximately 75% of IPIF Core Fund is exposed to Australian assets. We have a well-developed market in Australia where most of the core essential infrastructure assets are in unlisted funds. This is quite different to the global market, where there more infrastructure assets are listed.
Q: What is an unlisted investment?
A: An unlisted investment is not available on any tradeable exchanges. Instead, it is held privately, typically in a fund structure.
Q: Is investing in unlisted assets risky?
A: All investments carry risk. Unlisted infrastructure is no different. We manage this risk through our portfolio construction guidelines, as well as our rigorous and deep assessment of the underlying assets in the funds prior to our investment.
Q: Are unlisted and alternative investments the same thing?
A: Some say unlisted infrastructure is a type of alternative investment. However, we view unlisted infrastructure as mainstream. Some of the funds we invest in have been around for 25 years!
Q: Who can buy unlisted assets and securities?
A: Unlisted infrastructure can be complex as the regulations surrounding such investments require a great deal of experience and industry knowledge to navigate. You’re also dealing with very sizable investments, sometimes in the billions. For these reasons, only specialist funds or institutions with specialist teams have access to these investments.
Q: Why have I never heard of this before?
A: Historically, unlisted infrastructure investment has only been available to certain large, institutional investors. It has been their little secret! Up until now that is. Now, IPIF provides access to other investors, which levels the playing field.
Q: What do I have to do to get qualified?
A: First, check with your accountant to make sure you meet the definition of a “wholesale client” (as defined in the Corporations Act). Once you’ve done this, simply click through on our “get qualified” button and we’ll send you the forms you need to invest in our fund.