Australian Pension Managers Embark on European Outreach
Australia’s largest pension managers, including AustralianSuper, Australian Retirement Trust, and Aware Super, are this week traveling to France and the UK to expand private market investments in Europe, following a similar outreach trip to the United States last month, according to Private Equity Wire. Senior representatives from the AUD4.5tn superannuation sector are scheduled to meet with policymakers and investment figures in France before discussing matters with UK government officials.
Rising Offshore Allocations and Future Projections
Offshore allocations for Australian pension funds are increasing sharply, with more than 60% of new inflows now invested outside the country. Exposure to the UK and European Union is expected to exceed A$660 billion over the next decade, as stated in a joint statement from participating funds. The industry is projected to become the largest pool of pension capital outside the United States within five years.
Existing Holdings in European Assets
Australian funds maintain significant direct holdings in European infrastructure and real assets, including interests in airports such as Manchester, Vienna, and London Gatwick, as well as utilities and real estate platforms. As is widely known, these investments reflect a broader trend of pension funds diversifying into international infrastructure to manage long-term liabilities.
Participants in the Delegation
The group includes not only AustralianSuper, Australian Retirement Trust, and Aware Super, but also CBUS Super, HESTA, and Rest, according to Private Equity Wire. The UK’s Nest pension scheme, which holds a stake in Australian infrastructure investor IFM Investors, is also taking part in the discussions.
