Daniel Kemp
Future Fund recorded a -3.2% return for the quarter to end of March 2020 and has not yet revalued its unlisted assets.
Regulatory risk and climatic conditions are the culprits behind a drop in the value of water entitlements in the southern MDB, the first in four years.
Riparian Capital Partners managing partner Michael Blakeney said there is ‘no shortage of opportunities’ for investors but some processes may take a longer to execute due to current restrictions.
Estimates suggest that anywhere between A$27bn and A$50bn could be withdrawn from superannuation funds, but there should be adequate liquidity in the system to cope.
Federal report finds water inflows to the MDB have reduced because of climate change, leading to a decline in the reliability of general security water entitlements in some parts of the system.
The asset manager has pushed back fundraising to Q3 2020 due to due diligence constraints but was able to pull forward the acquisition of a beef property.
The covid-19 crisis could lead to institutional investors selling assets as they seek to shore up cash reserves, but livestock and broadacre cropping should be able to weather the storm for patient investors.
FIRB assessment process will now take six months instead of 30 days, with a $0 threshold for review applied to all transactions.
The two profit-for-member funds have delayed their merger date by six months due to concerns about market volatility and to help ease staff working arrangements.
Two of Australia’s largest funds, AustralianSuper and UniSuper, have booked significant devaluations of their unlisted asset portfolios in response to the coronavirus crisis.