Investing to grow your super and the Australian economy

AustralianSuper invests on a global scale. This includes a portfolio of over $90 billion in Australian investments. By investing in Australian companies and assets, we’re growing your retirement savings and supporting Australia’s economic growth and future prosperity.

AustralianSuper invests to grow members’ retirement savings over their working lives, so that they can approach retirement with confidence. We do this by finding the best investment opportunities across a range of asset classes and markets.

We invest to grow members’ retirement savings over their working lives, so they can approach retirement with confidence. To do this we find the best investment opportunities across a range of asset classes and markets.

 

Key points

  • We invest to deliver the best possible retirement outcomes for members.
  • Over $90 billion of members’ retirement savings are invested in Australia. 
  • This investment has helped to generate strong long-term returns for members, and also helps support the Australian economy to grow. 
  • As investors in Australian companies and assets, AustralianSuper members are actively contributing to the Australian economy today,  supporting its future growth and prosperity.

Investing to grow your super benefits the Australian economy

AustralianSuper invests over $180 billion globally. $90 billion of that money is invested here in Australia. We use our size, market knowledge and long-standing relationships to make investments that generate strong long-term returns for members. This includes investments in:

  • ASX-listed companies
  • unlisted Australian companies
  • large infrastructure projects and assets
  • commercial property assets
  • Government and corporate bonds
  • direct loans to Australian companies

These investments also contribute positively to the Australian economy.

 

4 ways AustralianSuper investments contribute positively to the Australian economy 

1. Helping Australian companies grow

As one of Australia’s largest investors, we have a history of helping Australian companies grow. We do this both as an investor in ASX-listed companies and as a lender to public and private companies.

We currently have $32 billion invested in or loaned to Australian companies1. These companies include some of Australia’s largest businesses that together employ hundreds of thousands of Australians.

As a long-term investor, we focus on investing in companies that generate value for members over long periods of time. This long-term view means we can support companies through the ups and downs of economic cycles. We don’t trade in and out of our investments in response to short-term market movements. 

Being able to ride the bumps of the market and act as a long-term capital partner means companies can better plan and invest for the future. Over the last 2 years we’ve supported more than 60 Australian companies with approximately $1.2 billion in new equity.

Supporting Australian companies through COVID-19

This support is particularly valuable in periods of volatility, such as the COVID-19 downturn. Since the onset of COVID-19 in March 2020, AustralianSuper has supported 20 Australian companies with over $380 million in new capital to help navigate the current challenges and position themselves for growth. This new investment in companies also helps to support the ongoing stability of Australia’s financial markets.

 

2. Advocating for better ESG outcomes

Being a long-term investor means our investment team can develop meaningful relationships with companies, and impact positive change. By engaging with a company’s board, for example, we can advocate for better environmental, social and governance (ESG) outcomes in the markets and communities in which they operate.

Some examples of this include:

  • Advocating for companies to commit to an action plan to support the transition to a low carbon economy
  • Calling on companies to meet our expectations in relation to gender diversity on boards.

READ MORE: ESG, ETHICAL INVESTMENT AND IMPACT INVESTMENT

 

3. Owning and investing in Australian infrastructure

AustralianSuper is one of Australia’s largest infrastructure investors, with a portfolio of over $11 billion of Australian infrastructure assets.

This includes direct investments in:

  • Ausgrid (electricity distribution)
  • WestConnex (motorway networks and tunnels)
  • NSW Ports
  • Transurban Queensland (motorway networks and tunnels)
  • Perth Airport

These assets improve the efficiency of Australian businesses, support jobs and contribute to the quality of life in Australian communities.

Infrastructure investments are well suited to the long investment horizon of superannuation funds. In committing to these large, illiquid, long-term investments, members have been rewarded with attractive and relatively stable long-term returns (this is often referred to as an ‘illiquidity premium’). Importantly, these investments also contribute to the creation of assets and jobs that benefit our economy and communities over many years.

READ MORE: UNDERSTANDING LISTED AND UNLISTED ASSETS

 

Investing to support a growing Australia

Each year, we invest in these infrastructure assets to make sure that over the long-term they continue to meet the needs of customers and the community; whilst delivering attractive returns for members.

For example, over the last 2 years, we've invested over $500 million in capital to develop and maintain its directly owned infrastructure assets.

We continue to look for opportunities to invest more in this area. The Fund engages with both state and federal governments on potential opportunities to further invest in infrastructure, either through supporting new large-scale projects or by investing in existing assets, enabling governments to recycle their capital into new infrastructure projects.

 

4. Fostering Australian innovation

AustralianSuper believes in supporting companies who are innovating for a better future. To date, we've committed to invest more than $1 billion to support emerging industries and promising Australian companies. This includes:

  • A commitment of approximately $700 million to Australian venture capital funds,
  • A dedicated in-house investment team focussed on identifying and investing in small and/or early stage ASX listed companies to support their growth plans,
  • An investment in Assemble Communities, a start-up affordable housing provider, to help fast-track the development of affordable housing projects in our cities.

 

How strong investment returns help boost the economy

AustralianSuper’s Balanced investment option has outperformed the median fund over every time period, and is Australia’s best performing fund over 5, 7, 10 and 15 years2.

Strong investment performance over time helps members retire with more money. This means higher household incomes and a better standard of living in retirement. In turn, this has a positive impact on the Australian economy:

  • It increases retiree’s capacity to purchase goods and services which creates additional demand and boosts jobs; and
  • It reduces the overall reliance of retirees on the Age Pension means that the government can re-direct that money into other areas of the economy.

VIEW AUSTRALIANSUPER’S PERFORMANCE 

 

Your super is supporting the Australian economy

It feels good to know that by choosing AustralianSuper, your retirement savings are contributing to Australia’s economic recovery, growth and future prosperity.

Knowing how your fund invests, and in what, can help you understand that your money is part of something much bigger than just your retirement. It’s helping grow Australia.

 

FIND OUT MORE: HOW WE INVEST

Sources:

  1. Accurate at time of publication, August 2020
  2. Based on the AustralianSuper Balanced investment option compared to the SuperRatings Fund Crediting Rate Survey - SR50 Balanced (60–76) Index, periods to 30 September 2020. Returns from equivalent investment options of the ARF and STA super funds are used in calculating returns for periods that begin before 1 July 2006. Investment returns are not guaranteed. Past performance is not a reliable indicator of future returns.

Asset allocations and other investment information is current as at June 2020. Asset allocations and investment strategies vary by investment options, read the PDS for more information.


Investment returns are not guaranteed. Past performance is not a reliable indicator of future returns.

This information may be general financial advice which doesn’t take into account your personal objectives, situation or needs. Before making a decision about AustralianSuper, you should think about your financial requirements and refer to the relevant Product Disclosure Statement available at australiansuper.com/pds. AustralianSuper Pty Ltd ABN 94 006 457 987, AFSL 233788, Trustee of AustralianSuper ABN 65 714 394 898.

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