GI50: New entrants in 2021

We profile new entrants to the ranking of the industry’s biggest investors

33

Hesta

Established in 1987, the specialist industry superannuation fund serves more than 880,000 members who work in health, education and community services. It has $42.65 billion in assets under management, with infrastructure investments spanning the renewables, social infrastructure, transport and telecommunications subsectors.

In 2020, in line with the Paris Agreement, it announced its commitment to reduce the absolute carbon emissions in its portfolio by 33 percent before 2030 and remove all investment in carbon emissions by 2050, thus becoming one of the first major Australian superfunds to do so. At the time, chief executive Debby Blakey told Infrastructure Investor that its investment in renewables represented 5 percent of its infrastructure portfolio and that it would seek increased exposure to the asset class over the coming years in order to meet its carbon reduction commitments.

36

Investment Management Corporation of Ontario

Formally created in 2016 through the Investment Management Corporation Act (2015), the Canadian asset manager’s first clients when it began managing funds in 2017 were the Ontario Pension Board and the Workplace Safety and Insurance Board. It continues to focus exclusively on public-sector clients in Ontario.

It now has $58.06 billion in assets under management, 30 percent of which are allocated to alternatives. Its infrastructure investment allocation stands at 8 percent ($4.64 billion), with assets primarily located in Europe and the Middle East (43 percent), followed by the US (27 percent), Canada (17 percent) and Asia-Pacific (6 percent).

37

Korean Teachers’ Credit Union

The Seoul-based public pension was founded in 1971 and has $32.63 billion in assets under management, with 56.4 percent of its portfolio allocated to alternative asset classes. Its current infrastructure allocation is 12.8 percent ($4.18 billion), with investments spanning the diversified, energy, social infrastructure, renewables, telecommunications, transport and utilities subsectors.

Although it has historically favoured investing in Asia-Pacific, in recent years it has taken a greater interest in infrastructure investments further afield. In 2017, it announced it would focus on industrial subsectors in North America and Europe. Earlier this year, it committed $70 million to KKR’s inaugural APAC-focused fund, Asia Pacific Infrastructure Investors.

39

Sunsuper

Established in 1987, the Brisbane-based superannuation fund is open to workers from all industries in Australia and has accumulated more than 1.4 million members to date.

The superfund has A$66.32 billion ($51.56 billion; €42.46 billion) in assets under management, 15.09 percent of which are allocated to alternatives. Its current infrastructure allocation is 8.06 percent (A$5.35 billion) and covers the energy, social infrastructure, transport, telecommunications and utilities subsectors.

Having undergone two mergers in recent years, it announced in 2020 that it intended to merge with fellow Brisbane-based superannuation fund QSuper. If the merger goes ahead as planned in September, it will create Australia’s largest superannuation fund, with A$200 billion in assets under management and two million members.

44

REST

Established in 1988, REST is one of the largest superannuation funds in Australia, with more than 1.7 million members and A$57 billion in assets under management. Its infrastructure investments span the energy, transport and communications subsectors. Although 59.1 percent of its infrastructure assets are in Australia and New Zealand, a sizeable portion are in North America (27.6 percent) and Europe (13.3 percent).

In 2018, it published its Climate Change Policy, setting out its long-term objective of achieving a net zero carbon footprint by 2050 in alignment with the Paris Agreement. To that end, 18.5 percent of its infrastructure portfolio is currently allocated to renewable energy assets. These include 100 percent ownership of the Collgar Wind Farm in Western Australia and a stake in California wind power company Capistrano Wind Partners, which owns and operates wind farms in North America.

45

Victorian Funds Management Corporation

Established via the Victorian Funds Management Act (1994), the Melbourne-based VFMC is responsible for managing the long-term investment assets of Victoria State Government entities in Australia.

It has $45.75 billion in assets under management and invests in a wide range of asset classes, with 20.18 percent of its portfolio allocated to alternatives. Of its AUM, 6.59 percent ($3.02 billion) has been allocated to infrastructure to date.

VFMC prides itself on including ESG considerations throughout its investment process and in 2019 was named in the Responsible Asset Allocator Initiative’s list of the top 25 most responsible asset allocators.

47

Desjardins Group

Founded in 1900, the financial cooperative is based in Lévis, Quebec, and has C$17.2 billion ($14.2billion; €11.7 billion) in assets under management. Of its AUM, 31.9 percent is allocated to alternatives, with 13.8 percent allocated to infrastructure – a little over its target allocation of 12.6 percent for the asset class.

With investments across the social infrastructure, transport, telecommunications and utilities subsectors, it is also committed to making significant investments in renewable energy. To that end, it made its first direct investment in green infrastructure in the US last year, committing $100 million to four wind farms and one solar farm in Indiana, Wisconsin, Oklahoma and Ohio.