Infrastructure Partners Investment Fund – Core (IPIF – Core) has invested $30 million in Utilities Trust of Australia (UTA), an unlisted infrastructure investment fund managed by Hastings Funds Management.

IPIF Core was created in early 2015 as a means for self-managed superannuation funds (SMSF) and high-net-worth (HNW) individuals as well as smaller institutional investors to access quality unlisted infrastructure funds.

Nicole Connolly, a founding Director of IPIF Management Pty Ltd, the fund’s manager, stated:

“SMSFs now represent the largest portion of the $1 trillion superannuation asset pool, and it is important that these sophisticated investors have access to quality investment products on a similar basis to larger institutional investors such as corporate, retail and industry superannuation funds.”

Ms Connolly, previously a Director, Alternative Assets at Russell Investments, said the fund, which can raise up to $200 million under the current Information Memorandum, also unlocks a new pool of capital to support the growing need for infrastructure investment in Australia. The investment in UTA follows a strong capital raising effort from IPIF Core in 2015.

“It is very difficult if not almost impossible for SMSF’s, HNW and smaller institutional investors to access this attractive asset class in a low cost structure. As a result we have had strong interest from investors wanting to gain exposure to quality unlisted infrastructure assets”.

The $30 million that has been raised and invested to date has come from a number of SMSF’s and HNW individuals as well as a number of smaller institutional investors.

Ms Connolly added:

“We have had strong support from a number of reputable advisers and financial planning groups that understand the attractive risk-adjusted return profile of unlisted infrastructure.”

IPIF Core’s initial investment in UTA provides its investors with a diversified portfolio of prized assets such as Melbourne and Perth Airports, tollroads such as Interlink Roads and a number of regulated assets such as Sydney Desalination Plant, ElectraNet and now TransGrid, managed by one of Australia’s most established infrastructure managers.

IPIF-Core will be managed by a highly experienced team of executives that includes Steve Merlicek, the Chairman and Hugh Gurner, a founding Non-executive Director.

Mr Merlicek has held senior executive positions at Telstra Super and is currently Chief Investment Officer at IOOF Holdings Ltd.

Mr Gurner has previously established successful funds management businesses and held board positions in a number of ASX listed and unlisted companies.

The Fund is open to wholesale and sophisticated investors and the minimum investment is $100,000.