Super funds on hunt for new US investment deals for members

A high-powered delegation of Australian superannuation leaders and other institutional investors will converge on Washington DC next week to go into bat for the interests of millions of Australians who have investments in the United States through their retirement savings – scouring the globe for the best deals to boost returns.

The delegation of funds, peak organisations, investment managers and banks, and the Future Fund will join Australia’s Ambassador to the United States of America, the Hon Dr Kevin Rudd AC, and Australia’s Consul-General in New York, Heather Ridout AO, in Washington DC and New York at the Superannuation Investment Summit.

The landmark Summit positions Australia’s superannuation system as one of the world’s fastest growing and reliable pools of long-term capital, creating new opportunities for investments that will drive strong returns for working Australians’ retirement savings.

Currently, large funds invest about one in five dollars of members’ retirement savings in the US.

These investments support portfolio diversification and ensure members have exposure to some of the best assets globally. Historically US listed equities have outperformed Australian equities boosting members’ investment returns. Super funds also have substantial holdings in private assets across the United States, including critical infrastructure.

Over four days, the delegation will meet with Government officials at Federal and State level and their investment sector peers, building a greater awareness of the Australian system that will, over the next decade invest hundreds of billions of dollars in the US.

Australia’s superannuation pool of capital is growing at such a trajectory that funds will need to continue investing overseas to generate appropriate risk-adjusted returns for members – and as stewards of members’ retirement savings, it’s our fiduciary duty to ensure that capital is invested in the best assets globally.

Our AU$4.5 trillion retirement system is widely regarded as a global leader. Australia is home to the fourth-largest pool of retirement savings, and is now a net exporter of capital, and its scale and growth supported by its near universal coverage and compulsory and preserved nature of savings.

As Australia and the United States continue to strengthen diplomatic and economic ties, the historic summit is a rare opportunity to acknowledge and celebrate what brings our nations together – and forge a plan for how we deepen these relationships for years to come, ultimately benefitting Australian workers in retirement.

By scouring the world for the best opportunities to grow members’ retirement savings, funds are also helping strengthen Australia’s economic and diplomatic ties, shoring up our growing influence on the international financial landscape, and most importantly, protecting and growing the retirement savings of working people.

Contact:

Patrick Lane (IFM Investors): 0437 884 010

James Dowling (SMC): 0429 437 851

Richard Garfield (ASFA): 0451 949 300