30/04/2023
https://www.iwadvice.com.au/blog/australiansuper-unlisted-property
The answer? Relative to their own ranges, very much towards the low end.
With all the discussion surrounding unlisted assets, property & superfunds. I thought a good place to start would be to look at to understand how AustralianSuper value their unlisted properties.
The question, is whether AustralianSuper are conservative or aggressive when valuing their unlisted property investments.
Naturally, everything discussed completely hinges on the credibility & accuracy of the actual valuation ranges themselves.
Nonetheless, it would appear that relative to AustralianSuper's own ranges, their property valuations are carried at a book value which is much closer to the low end of the estimated range.
In order to figure this out, I started with the Balanced Option’s Portfolio Holding Disclosure (PHD) for CY22.
In the PHD, AustralianSuper provide a “High” and “Low” for valuation range each of the 161 unlisted property investments.
Pleasingly, the PHD also shows the entire balance of the Unlisted Property.
Ergo, one can then work out (subject to a few assumptions), at least where AustralianSuper sits relative to their own guidance.
The verdict, per teaser Darryl Kerenigan graphic below, is that as a whole, AustralianSuper are much closer to the Low end of the values range for unlisted property. Again, this is for the 161 unlisted properties identified by the Balanced Investment Option's PHD.
Again, any assertions in the blog post are no more credible than the actual ranges themselves, which I haven't and wouldn't be able to speculate on.
Interestingly, when you segregate the assets that are externally managed versus the internally managed assets, it would appear that the internally managed assets are in fact more conservatively valued than the aggregate.
https://www.iwadvice.com.au/blog/australiansuper-unlisted-propertyThe answer? Relative to their own ranges, very much towards the low end.
With all the discussion surrounding unlisted assets, property & superfunds. I thought a good place to start would be to look at to understand how AustralianSuper value their unlisted properties.
The question, is whether AustralianSuper are conservative or aggressive when valuing their unlisted property investments.
Naturally, everything discussed completely hinges on the credibility & accuracy of the actual valuation ranges themselves.
Nonetheless, it would appear that relative to AustralianSuper's own ranges, their property valuations are carried at a book value which is much closer to the low end of the estimated range.
In order to figure this out, I started with the Balanced Option’s Portfolio Holding Disclosure (PHD) for CY22.
In the PHD, AustralianSuper provide a “High” and “Low” for valuation range each of the 161 unlisted property investments.
Pleasingly, the PHD also shows the entire balance of the Unlisted Property.
Ergo, one can then work out (subject to a few assumptions), at least where AustralianSuper sits relative to their own guidance.
The verdict, per teaser Darryl Kerenigan graphic below, is that as a whole, AustralianSuper are much closer to the Low end of the values range for unlisted property. Again, this is for the 161 unlisted properties identified by the Balanced Investment Option's PHD.
Again, any assertions in the blog post are no more credible than the actual ranges themselves, which I haven't and wouldn't be able to speculate on.
Interestingly, when you segregate the assets that are externally managed versus the internally managed assets, it would appear that the internally managed assets are in fact more conservatively valued than the aggregate.
AustralianSuper Property Valuations
