From The White House to Number 10 Downing Street, Australian pension capital was at the centre of headline-grabbing geopolitical discussions this week, underscoring the global reach and influence of Australia’s $4.3 trillion superannuation system.
In the US, President Donald Trump appeared alongside Australian Prime Minister Anthony Albanese to announce a deal between the two nations. A statement released by the White House included a reference to modelling by the Super Members Council, showing a forecast increase in the US investment pipeline from Australian super funds of $US1.44 trillion over the next decade.
It is important to note that this is a forecast and not a commitment. Super funds will continue to make investment decisions independently and in the best financial interests of members.
Meanwhile, in the UK, the Super Members Council was part of a senior delegation of Australian superannuation leaders meeting with UK government officials, including high-profile ministers, regulators, and institutional investors, to explore new opportunities and drive down barriers to investment.
Helping shape the summit, was a recent Super Members Council and IFM Investors report showing investment in the UK and Europe by Australian super funds is projected to more than double over the next decade to more than $AUD660 billion.
The message from the UK government was clear: Australian pension capital is central to its growth agenda, as it attempts to lure overseas investment to build housing, transport and energy projects.
It comes after Australian super funds attended the Australian Superannuation Investment Summit in Washington DC earlier this year.
Currently, Australian funds invest almost half of their members’ retirement savings in global markets such as the US or the UK.
By the early 2030s, Australia is expected to have the second largest retirement savings pool of its kind in the world. This means super funds must continue to scour the globe for the best opportunities to grow members’ retirement savings and the US, UK and Europe remain attractive destinations.
This was originally published in our weekly Super Wrap email. Subscribe here.
