Australian industry super funds are stepping up their offshore investment push this week, with senior leaders travelling to France and the UK to pursue fresh infrastructure and private market opportunities as the sector’s capital pool continues to outgrow the domestic market.
The trip underscores how quickly the super system is becoming more reliant on international markets to absorb new inflows, with more than 60 cents of every new dollar contributed to retirement savings now being invested offshore.
That shift is only expected to accelerate with Australia already having the world’s fourth-largest superannuation system and, within five years, the nation’s retirement pool is forecast to become the largest outside the United States.
France and the UK have emerged as key targets for that capital, particularly as funds look for large-scale, long-duration assets that fit their appetite for infrastructure, logistics, renewables and urban regeneration projects.
Australian super investment across the European Union and the UK is tipped to exceed $660 billion over the next decade, opening the door for deeper allocations into private markets and large infrastructure developments.
For funds, the rationale is clear: global diversification has become increasingly important in volatile markets, while Europe offers mature regulatory environments and established asset classes that can support long-term member returns.
Australian super funds are already deeply embedded in both markets with existing holdings including exposure to ERG, the European renewable energy operator with 605MW of installed wind capacity and 128MW of solar capacity, as well as Atlas Arteria, which operates 2,424 kilometres of French toll roads.
Funds also hold stakes in euNetworks, which is expanding digital infrastructure across France and Europe, the Oxford Properties M7 Real Estate platform and its circa €840 million European industrial and logistics portfolio, and major London developments including King’s Cross Estate and the Canada Water regeneration projects.
The delegation will spend 20 to 22 April in France meeting senior political figures, public financial institutions, infrastructure leaders, private investors and the OECD to discuss long-term Australian pension capital flowing into the country.
Representatives from IFM Investors, AustralianSuper, Australian Retirement Trust, Aware Super, Cbus, HESTA, Rest and the Super Members Council are part of the France visit, together representing more than €750 billion in workers’ retirement savings. NEST, the UK’s largest workplace pension scheme and an IFM Investors shareholder, is also participating.
After the France meetings, the group will head to the UK on 23 April for talks with the UK Government as industry funds continue to widen their search for offshore assets capable of supporting long-term retirement outcomes.
