Multi-billion dollar exposures justified | Australian Markets

Australia’s main industry superannuation funds have emerged united on why it made sense and provided members worth to attend final month’s Superannuation Summit within the US – the billions of {dollars} they’ve invested there.

The common reply from the industry funds is that the US represents their largest investment vacation spot, accounting for billions of {dollars}, and therefore it justified the expense of attending.

The associated fee of attending the summit, organised by the US Embassy in Washington, was calculated by the assorted funds at round $17,000 however Australia’s largest superannuation fund, AustralianSuper, mentioned the entire journey and lodging value of attending the summit was roughly US$4,900.

Justifying the train, the fund acknowledged to the Senate Economics References Committee: “The US is AustralianSuper’s largest investment market outside of Australia. AustralianSuper has an overseas office located in New York. Currently the fund invests more than US$80 billion of members’ assets in the US market, and this is expected to grow significantly in the future. The CE and CIO travel regularly to the US to oversee the Fund’s US operations.”

It went on to say the Summit supplied AustralianSuper with cost-effective entry to data and engagement that may help future investment within the US market”.

Constructing and construction industry fund, Cbus, supplied a related reply stating: “The US is the largest economy in the world and a key market for infrastructure, technology, and energy investments. Keeping informed about developments in such markets is essential to acting in the best financial interests of our members”.

Cbus mentioned it was represented by its chair, Wayne Swan and the Head of Personal Markets and Infrastructure, Jordan Kraiten who, moreover, had undertaken investment supervisor conferences and engaged with offshore pension funds as half of the journey.

Well being and hospital-focused fund HESTA mentioned it seen the expenditure incurred on the Summit “as reasonably necessary for the prudent operation of the fund” to handle dangers related to financial occasions within the US.

HESTA notes the next in relation to its attendance on the Summit:

• HESTA and its members have important portfolio publicity of more than $28b in the USA together with listed and unlisted investments.
• The Summit supplied individuals important alternative to additional the pursuits of their members by way of engagement with world portfolio investment managers and participation in multi-lateral discussions on investment approaches and alternatives within the US.
• The Summit supplied HESTA with an ongoing understanding of the quickly altering investment surroundings within the US together with adjustments to coverage which may affect HESTA’s world portfolio investments.