Super funds welcome UK's Supers Unit to push investments

The Australian superannuation industry has welcomed the creation of a dedicated Supers Unit by the UK government, which will prove as a point of contact to help funds identify and progress investment opportunities in the UK.

This follows a commitment by both governments on an investment partnership to further unlock superannuation and pension capital investment between the countries.

The memorandum of understanding (MoU) was signed by UK Chancellor of the Exchequer Rachel Reeves and Australian Treasurer Jim Chalmers on the sidelines of the G20. in Washington DC.

A number of Australian super funds and investors, including IFM Investors, AustralianSuper, Australian Retirement Trust, Aware Super and Rest have offices in London and have steadily grown their presence in the UK over time.

Aware Super chief investment officer Simon Warner said its presence in the UK reflects its conviction in UK's long-duration and high-quality assets.

"The Supers Unit is a welcome initiative as it recognises the growing scale of Australian superannuation capital and will make it easier to deploy that capital into projects that deliver for both our members and the communities in which we invest," Warner said.

IFM Investors Head of Global External Relations David Whiteley said the UK is a natural partner for Australian funds and it will continue to work closely with the UK Government so Australian workers' retirement savings can help get quality projects off the ground.

"It's a familiar market with a deep pipeline in the energy transition and essential infrastructure, and sophisticated pensions system," Whiteley said.

UK has highlighted key projects in clean energy, infrastructure, housing and innovation as priority areas for investment.

UK minister for investment Lord Stockwood said in an unstable world, Britain is providing stability that international businesses need in the long term.

"The UK is a thriving business hub, and our Supers Unit will pave the way for vital investment into key UK projects, helping to deliver long-term economic growth while boosting our already strong trade relationship with Australia," Stockwood said.

HESTA chief executive Debby Blakey also welcomed efforts to reduce barriers to investment and build stronger networks between the two markets.

"Initiatives like this can support further investment in areas such as the digital and energy transitions where HESTA has a strong focus," Blakey said.

Super Members Council chief executive Misha Schubert added: "As Australia's super system grows, global diversification will play an even bigger role in delivering strong, stable returns for everyday Australians."

"Partnerships like this help unlock high-quality investment pipelines, while ensuring Australian retirement savings are positioned to benefit from long-term global growth," Schubert said.