Articles

Private Assets and Portfolio Strength

 

AUSTRALIAN RETIREMENT TRUST

2025 ROAD SHOW REPORT

PRIVATE ASSETS AND THE FUTURE OF DIVERSIFICATION

By Michael Weaver Head of Global Real Assets
Presented at The Establishment, Sydney – April 9, 2025

 

🔍 Why Private Markets Matter More Than Ever

In a highly anticipated closing presentation, Michael Weaver gave attendees a masterclass on how private assets is reshaping long-term portfolio construction at ART.

“With inflation returning and markets more volatile, investors need genuine diversification. That’s what private assets offer,” Weaver said.

ART now invests over $70 billion across:

• Private equity
• Infrastructure
• Real estate
• Private debt

These long-duration assets deliver inflation-linked income and reduce exposure to short-term equity swings.

 

🏢 Deep Dive: How ART Invests in Each Asset Class

🟩 Private Equity

• Focused on value creation, not just financial engineering.
• Targets growth sectors: tech, healthcare, and consumer staples.
• Example: Vishal Mega Mart in India—an ART investment that delivered 8x return through retail expansion.

🟧 Infrastructure

• Consistent, inflation-linked cash flows from essential services.
• Assets include Sydney Airport, Heathrow, AusNet, data centres, and renewables.
• Case study: Pattern Energy—a US-based wind and transmission company with strong bipartisan political support.

🟥 Real Estate

• Underweight office and retail; overweight industrial, logistics, and multi-family housing.
• Investing heavily in:
  • Holiday parks (e.g., Rottnest Island)
  • Aged care property (UK and Australia)
  • Student accommodation (e.g., Norway)
• Strong tailwinds from supply constraints and demographic shifts.

 

📊 Valuations and Liquidity: Are Private Assets Risky?

Weaver addressed common concerns about volatility and valuation:

“ART uses independent valuation teams, frequent updates, and board oversight. Even in downturns, our drawdowns were smaller and recoveries quicker than listed assets.”

 

🌍 Strategic Allocations: Where ART Sees Value

Asset Class	ART’s Role	Funding Source
Private Equity	Growth engine	Replaces equities
Infrastructure	Stability + inflation protection	Equities + bonds
Real Estate	Yield + diversification	Equities + bonds

Weaver emphasized that private assets are not for timing—they’re for building resilient, income-producing portfolios over decades.

 

💼 What Advisers Should Do Now

• Educate clients on why private assets add value and resilience.
• Explain the long-term nature of these investments: not designed for short-term liquidity, but better inflation and return performance.
• Reinforce diversification: These assets perform differently from shares and bonds—exactly what’s needed in today’s world.

 

🎯 Final Thought

“Private assets are not a luxury—they’re a necessity in the modern investment toolkit,” Weaver said.

 

General Advice Warning

The information provided in blog is of a general nature only and does not constitute personal financial advice. It has been prepared without considering your individual objectives, financial situation, or needs. Before acting on any information, you should consider its appropriateness to your circumstances and seek professional advice.

Disclaimer

Familia Wealth and Shartru Wealth do not endorse or guarantee the accuracy or completeness of any third-party content referenced in this blog. The views expressed by third parties are their own and do not necessarily reflect the opinions of Familia Wealth or Shartru Wealth. While care has been taken to ensure the information is accurate at the time of publication, neither Familia Wealth nor Shartru Wealth accepts liability for any errors or omissions.

 

Posted in Articles at 15 April 25