Australia's biggest pension fund flags equities risks and eyes U.S. infrastructure

Record ID: 904406

  • Title: Australia's biggest pension fund flags equities risks and eyes U.S. infrastructure
  • Date: 27th July 2017
  • Summary: SYDNEY, AUSTRALIA (JULY 27, 2017) (REUTERS) CHIEF EXECUTIVE AUSTRALIAN SUPER, IAN SILK SEATED AT INTERVIEW (SOUNDBITE) (English) CHIEF EXECUTIVE OF AUSTRALIAN SUPER, IAN SILK SAYING: "The risks are principally in equity markets as the sort of engine room. And, for Australian super funds equity markets, really determine the bulk of the absolute returns because most Australian Super funds have 45 to 65 percent of their assets in Australian and global equities. So equity markets are the principle driver of returns." WHITE FLASH (SOUNDBITE) (English) CHIEF EXECUTIVE OF AUSTRALIAN SUPER, IAN SILK SAYING: "We'll have to see what actually comes out of that. Most of the infrastructure opportunities in the States are not determined by the national government, they are determined by the state governments and the appetite for the state governments varies considerably in the United States. But, anybody who's travelled to the United States can observe firsthand that there is an enormous opportunity for the infrastructure in that nation to be lifted considerably. Just jump off the first plane, land at the first airport, there's every chance it's not the sort of standard that you would expect to the United States to have." WHITE FLASH (SOUNDBITE) (English) CHIEF EXECUTIVE OF AUSTRALIAN SUPER, IAN SILK SAYING: "We're budgeting for a reduction in our investment costs. So the cost part of the story is coming home exactly as we'd intended and fortunately, and this is the key part of course, the gross returns from the investment teams have been strong." SILK SITTING
  • Embargoed: 10th August 2017 09:02
  • Keywords: AustralianSuper Australia's largest pension fund infrastructure opportunities in the United States
  • Location: SYDNEY, AUSTRALIA
  • City: SYDNEY, AUSTRALIA
  • Country: Australia
  • Topics: Company News Markets,Economic Events
  • Reuters ID: LVA0016RHSIA5
  • Aspect Ratio: 16:9
  • Story Text: Australia's largest pension fund, AustralianSuper, is preparing for the end of the global equities run and looking to infrastructure opportunities in the United States where it believes foreign firms will in time gain greater access.
    AustralianSuper is a A$120 billion ($96.6 billion) fund that seeks out major positions, chief executive Ian Silk said at a Reuters Newsmaker event on Thursday (July 27) in Sydney, that can affect its burgeoning book.
    Silk said an equities rally - Australia's benchmark has gained 43 percent since 2012 and the MSCI World Index has risen 67 percent over the same period - and recent strong Australian property price rises were being monitored and managed. Silk said that U.S. President Donald Trump's $1 trillion infrastructure plan represented an opportunity even if it was unclear if and how the plan would operate. He felt that any concerns against foreign investment in the United States would be overcome by its immense need to improve its infrastructure.
    In a quest to reduce fees and improve returns, AustralianSuper is building its internal management capability, as opposed to only awarding mandates to external managers.
  • Copyright Holder: REUTERS
  • Copyright Notice: (c) Copyright Thomson Reuters 2017. Open For Restrictions - http://about.reuters.com/fulllegal.asp
  • Usage Terms/Restrictions: None
Register