Having scale is the best way to reach net zero outcomes, as larger funds have more influence over investment decisions, according to a panel.
Speaking at the Frontier conference, Sue Brake, Future Fund chief investment officer (CIO), said decarbonisation was a huge theme and not being part of it meant being an ineffective steward of assets.
“The way in which you can get thoughtful in the way you help the energy transition and how make sure capital is in the right place to make the change is something smaller funds would not have the same influence,” Brake said.
“I do think there’s an advantage, there’s some interesting ways in which we can help the transition and I’m not saying smaller funds can’t participate in that, but I can see some really interesting strategies we’re running and themes we’re looking at where you need a bit of capital and resources to be able to run.”
Kristian Fok, Cbus CIO, said there was more collaborative efforts on this particularly around private markets.
“When you can control capital decisions and reframe how you might choose between maybe on opportunity that is mindful around low discount rates, new technology or increasing sustainability… having scale capability and influence means you can do a lot more there,” Fok said.
“We’ve certainly seen that in the property space but now we’re seeing infrastructure assets being considered in the same way.”
Mark Delaney, AustralianSuper CIO and deputy CEO, said: “It really is a combination of good investment sense and good social sense so if we’re in a position to do something we should do it”.
Super funds have built on early financial year momentum, as growth funds deliver strong results driven by equities and resilient bonds.
The super fund has announced that Mark Rider will step down from his position of chief investment officer (CIO) after deciding to “semi-retire” from full-time work.
Rest has joined forces with alternative asset manager Blue Owl Capital, co-investing in a real estate trust, with the aim of capitalising on systemic changes in debt financing.
The Future Fund’s CIO Ben Samild has announced his resignation, with his deputy to assume the role of interim CIO.