Christian Super explains its energy strategies

The Australian superannuation fund eyes renewables opportunities in emerging markets.

Christian Super, Australian superannuation fund, said that is not planning an aggressive expansion of energy investment, instead, it only expects to make A$10 million to A$20 million investment in energy in late 2017 and early 2018.

The Australian superannuation fund explains that it usually stays away from fund-of-funds for private investments. However, renewables investment is an exception as they found the extra layer of fees are justified by benefits of diversification brought by the fund-of-fund structure.

The two major criteria of selecting fund-of-funds managers are that 1) the manager should have a reasonable sized team in the local market where the investments are located and 2) should have adequate technical understanding of the investments.

Currently, the fund has highest energy investment exposure in South-East and East Asia and Latin America. It is aiming to have renewable exposure in 30 to 40 countries.

Christian Super has approximately A$60 million private equity in its portfolio and 30 percent of which is energy investment.

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