POWERED BY MOMENTUM MEDIA
Inaugural super summit reaffirms Australia’s ‘envy of the world’ system
Australia, and its 30-year-old super system, will be an “essential contributor to US prosperity”, the Treasurer has said.
Representatives of superannuation funds, investment managers and peak organisations have wrapped up at the inaugural Superannuation Investment Summit held in Washington and New York last week, in a bid to position and build awareness of Australia’s superannuation pool of savings.
The event, the representatives said in a collective statement on Friday, had the purpose to create new investment opportunities for the millions of Australians who have investments in the US through their super fund.
According to the delegation, it heard from two Trump cabinet secretaries, three state governors and a number of leading investment and business leaders over the event.
“We have learned their perspectives on the economic priorities of the new Administration, and the investment opportunities for super funds,” the statement said.
“We have also heard from, and engaged with, the senior leaders of some of the United States’ largest and most innovative companies, entrepreneurs and leading-edge researchers.”
Treasurer Jim Chalmers, who delivered an address at the summit, said the gathering was about “stronger returns and stronger economic ties between two great countries”.
“Australia has and will be an essential contributor to US prosperity,” Chalmers told attendees. “Our economic partnership is mutually beneficial and has never been more critical”.
According to the Treasurer, the event in Washington was attended by governors and congressional representatives from five US states – Illinois, Florida, Tennessee, California and Connecticut – that make up more than a quarter of the American economy.
The summit comes at an opportune time for both the US and Australia. Namely, by 2035 it is projected that millions of Australians will be investing a trillion US dollars in America through their super.
Last week, a new report commissioned by IFM Investors found that, in particular, local funds are expected to invest US$140 billion in US private markets, with around US$60 billion earmarked for infrastructure, targeting sectors such as roads, ports, logistics, energy and telecommunications.
“We look forward to continuing to uphold these relationships – and facilitating reciprocal opportunities for US investors and innovators to come to Australia,” the representatives confirmed.
Over the summit, they had the opportunity to demonstrate superannuation as a "distinctly different” pool of capital, and explain its sale and growth.
Notably, the delegation said that the reception from the US has been “clear and constant”; the Australian system remains the “envy of the world”.
“Its design is recognised as fundamental to its success: universal, compulsory and savings are preserved until retirement. These design features enable deployment of long-term capital into global markets, including infrastructure.”
“Australian superfunds are scouring the world for the best opportunities to grow members’ retirement savings, in turn helping strengthen Australia’s economic and diplomatic ties and shoring up our growing influence on the international financial landscape.”
“In the US, through their super funds, Australians are now regarded as amongst the biggest and most sophisticated investors in the world.”
The delegation also thanked 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, for helping stage the event.
AUTHOR
Jessica Penny
Recommended for you
The US administration has reportedly been impressed by Australia’s super system after super fund leaders attended a high-level summit in New York to secure top-tier investment opportunities.
The consensus among alternative investment managers and the broader industry is that an added regulatory impost would stifle returns in private markets.
While some see Wednesday’s monthly CPI report as “good news” for the RBA, others don’t expect additional rate cuts in coming months.
Building on its extensive report highlighting superannuation funds as key investors in private markets both locally and offshore, ASIC chair Joe Longo said ASIC has no objections to funds investing overseas.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
32.68 3 y p.a(%)
2
Global X GlobalX FANG+ ETF
32.50 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
32.45 3 y p.a(%)
4
Spire Oaktree Opportunities XI First Close USD
31.36 3 y p.a(%)
5
Fidante Credit Suisse Global Private Equity
30.48 3 y p.a(%)
