A high-level delegation of Australian pension fund leaders will meet with the UK government, regulators, civil servants and UK pension representatives later this month to discuss long-term funding opportunities in the UK.
This UK Super Summit will take part in London and Birmingham on 20 and 21 October, and will focus on unlocking barriers to global capital investment by identifying areas where Australia’s superannuation funds can support infrastructure, energy transition, and other long-term UK projects.
The two day summit will be attended by senior executives and investment experts from Austalia’s largest superannuation funds, and is part of the government’s agenda to boost the UK economy, while also improving the retirement savings of those working in the UK.
Australia’s superannuation system is one of the fastest-growing and most reliable sources of long-term capital globally, with A$4 billion a week flowing into its A$4.3 trillion (£2.1 trillion) retirement system, making it the fourth largest global pool of retirement funds. This steady influx of new funds means it is projected to be the second largest retirement savings pool(after the US) by the early 2030s.
Attracting investment from Australian funds is seen as a key opportunity for the UK, which is looking for funding for a range of infrastructure projects over the coming decades., including transports, housing and energy and digital networks.
Australian pension capital already plays a significant role in the UK economy. For example the pension-owned investment manager IFM Investors, in partnership with Manchester City Council and other local authorities, currently owns a stake Manchester Airports Group (MAG) — which owns Manchester, Stansted, and East Midlands Airports.
The Government points out that MAG is close to completing a £1.5 billion upgrade at Manchester Airport, expanding capacity from 28 to 42 million passengers annually, while plans for a further £1.1 billion expansion at Stansted could create more than 5,000 jobs and double the airport’s economic contribution to £2 billion a year. The project also includes a 14.3MW on-site solar farm to support the UK’s net zero goals.
The UK Super Summit follows a similar event held earlier this year in Washington DC, as Australian super funds look to diversify portfolios overseas in a bid to deliver long-term stable returns.
Currently, nearly half of all Australian super assets are invested in global markets such as the US and UK.
IFM Investors’ head of global external relations, David Whiteley, says: “Industry super funds and IFM Investors are scouring the world for the best opportunities to grow members’ retirement savings – and as both countries work together to address critical infrastructure needs and drive sustainable growth, the Summit reflects the growing global influence of Australia’s super system.”
Super Members Council CEO, Misha Schubert, adds:“Australia’s super system is the envy of the world, with major global economies competing for Australia’s growing pool of super capital, and millions of working Australians benefitting from investments that deliver more money to their retirement savings.”
Mary Delahunty, CEO of the Association of Superannuation Funds of Australia adds: “The UK is home to one of the deepest capital markets in the world, and has a flourishing private investment landscape, a common rule of law and familiar regulatory settings.
“Aussie super funds are providers of capital to international economies and we look offshore to diversify and grow member returns. This is a key element of giving working Australians the best chance at a dignified retirement.”
The summit underscores the growing partnership between Australian superannuation funds and the UK economy, as both countries look to harness long-term investment capital to drive jobs, infrastructure and sustainable economic growth.
