How members are benefiting from global investments

Access to investment opportunities not available in Australia

Australia is ranked 13 in world economic terms based on gross domestic product¹. Limiting our investments to Australia alone would mean that members miss out on the valuable profit opportunities available in other growing economies.

The world is full of investment opportunities, and by investing globally, AustralianSuper can tap into these. Different countries have different strengths. For example, the United States is home to many of the world's largest tech companies including Nvidia, Alphabet (Google), Apple and Amazon, while emerging markets like India or Brazil can offer high growth potential.

Higher growth potential

Global investments often have higher growth potential than sticking solely to local investments. Many international markets, especially in developing countries, are growing at a faster pace than Australia's. By investing in these high-growth areas, AustralianSuper can potentially achieve higher returns for your superannuation.

For example, technological advancements, urbanisation, and economic reforms in countries like the UK and India create unique opportunities for growth that AustralianSuper can capitalize on. This growth potential is essential for building a substantial retirement nest egg. Examples of these investments include the Canada Water urban regeneration project, London’s King’s Cross Estate, Peel Ports Group and Vantage Data Centers.

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Diversification

One of the main benefits of global investments is diversification. This means spreading your investments across different countries, industries, and companies. By doing this, you're not putting all your eggs in one basket. If one market or sector performs poorly, your overall investment is less likely to take a big hit because other markets or sectors may be doing well.

For example, if the Australian economy is experiencing a downturn, investments in other countries that are performing better can help balance out the returns. This reduces risk and can potentially lead to more stable and consistent growth for your super.

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Managing risk

Every country has its own set of economic risks and uncertainties. By investing globally, AustralianSuper has the opportunity to help reduce the impact of any adverse events in Australia on your retirement savings.

For example, if there are significant political or economic issues in Australia, having investments spread across different countries can offer some protection to your super from dramatic losses.

Currency diversification

Investing globally involves dealing with different currencies. While this might sound complicated, it can benefit members. When the Australian dollar is weak, the value of investments in stronger foreign currencies can boost the overall performance of your super.

On the flip side, if the Australian dollar is strong, it might reduce the value of global investments, but the diversified portfolio can still provide balance and reduce large swings in value. This currency diversification can help smooth out member returns over the long term.

Global expertise

For the past eight years AustralianSuper has been setting up teams and offices in key investment markets overseas, such as London, New York and Beijing, to manage the Fund’s international investments. By leveraging local knowledge and expertise, we believe we have access to better global investment opportunities, which aim to deliver strong long-term returns to members.

We’re already a significant investor globally, with over $100 billion invested in the US and over $40 billion in the UK and Europe². By 2030, we’re expecting our global investments to grow even further so that we can continue to aim to deliver strong returns for members. This includes the potential to have investments of more than $35 billion (£18 billion) of funds in the UK by 2030.

Through these types of investments, we’re contributing to Australia’s growth, jobs and productivity by directing returns back to members in Australia.

Learn more

By investing globally, we’re helping to minimise volatility and grow your retirement savings, giving you confidence in your financial future. Learn more about where your money is invested and the benefits to your retirement:

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