SMSF are flocking to infrastructure investments, with the asset class considered a new kid on the block among the usual blue-chip stocks in finance, resources and retail, according to SuperConcepts.
The firm’s “SMSF Investment Patterns Survey” for June 2018 indicates Transurban is at position 11 for the most commonly held shares by SMSFs at 30 June in dollar terms.
For the first time, Transurban dipped into the top 10 companies SMSFs invest in during the survey period, but dropped to number 11 by the time SuperConcepts compiled its final report on SMSF investment trends.
SuperConcepts SMSF technical and strategic services executive manager Phil La Greca said: “This is fascinating but not surprising because SMSF investors have always struggled to get into infrastructure, which has so far been beyond their reach.
“Infrastructure is an attractive investment for SMSFs because they typically provide long-term returns, and we’re seeing that recognised by others such as the Canada Pension Fund, which also just invested in WestConnex.
“The prevailing attitude is: ‘Why buy a product or service when you can buy the infrastructure?’”
Transurban recently bought a 51 per cent stake in the New South Wales government’s $17 billion WestConnex project, while it already owns seven of Sydney’s nine toll roads.
Companies in the top 10 most commonly held shares include Westpac, Commonwealth Bank of Australia, BHP Billiton, ANZ, National Australia Bank and CSL.