How we invest
We focus on investing for the long term and choose a diverse range of value for money investments, an approach that considers both risk and reward.
Spotlight on our investments
Whether you’re just dipping your toes into the world of investing or managing $8.5 billion on behalf of members, diversifying your investments is key.
At Qantas Super, we focus on being well diversified by building portfolios with investments that complement each other. That means your super is invested across over 5,000 investments such as shares, property, infrastructure, timberland, agriculture, a variety of bonds, and cash.
Take a look at a couple of the things we’ve invested in:
Real Estate Opportunistic Debt Fund (Benefit Street Partners)
Qantas Super has invested in a real estate opportunistic debt fund via investment manager Benefit Street Partners (BSP).
The manager lends to real estate in the United States, from offices to hotels, retail space, and multi-family residential property. These loans are then essentially packaged up and sold in tranches to other parties through what’s called a collateralised loan obligation. Each tranche sold to investors may also have a different risk and return profile.
If you’re thinking that sounds a bit like The Big Short, Qantas Super investment manager Chris Grogan explained that, rather than distressed assets, BSP is looking for quality real estate investments. Quality real estate investments mean they are not highly leveraged – that is, there’s not too much debt versus equity – are in markets with strong or growing demand for tenants or residents, and where loans have strong lender protections, known as covenants.
“Unlike equity, there’s no upside with debt; there’s only downside in that you either get your money back, or you don’t. Therefore, the skill a lender needs is to ensure they’re picking assets to lend to that aren’t at risk of not being repaid.”
“The risk of a loss is low, as Benefit Street Partners is a skilled real estate lender and they are controlling what the underlying collateral is on Qantas Super’s behalf,” Chris explained.
Qantas Super’s investment in Benefit Street Partners Real Estate Opportunistic Debt Fund is held within the Fixed Interest portfolio.
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