{"id":102337,"date":"2025-03-10T11:30:00","date_gmt":"2025-03-10T00:30:00","guid":{"rendered":"https:\/\/en.econostrum.info\/au\/?p=102337"},"modified":"2025-03-10T09:51:31","modified_gmt":"2025-03-09T22:51:31","slug":"australia-super-funds-asx-investing-limits","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/au\/australia-super-funds-asx-investing-limits\/","title":{"rendered":"Australia’s Biggest Super Funds Near ASX Investing Limits, Shifting Focus Overseas"},"content":{"rendered":"\n<p>Australia\u2019s largest superannuation funds, including AustralianSuper, are approaching the limit of how much they can invest in the Australian stock market while still maintaining strong returns. As a result, these funds are shifting more of their members\u2019 retirement savings overseas to access better diversification and higher-growth opportunities.<\/p>\n\n\n\n<p>According to the <a href=\"https:\/\/www.afr.com\/companies\/financial-services\/the-country-s-big-super-funds-are-reaching-their-asx-investing-limit-20250305-p5lh2g\" target=\"_blank\" rel=\"noopener\">Australian Financial Review<\/a>, AustralianSuper, which manages over $365 billion, expects to hit an effective cap on its ASX-listed investments within months. This shift marks a significant moment for Australia\u2019s superannuation industry, as major funds face new challenges in balancing local and global investments to secure the best possible returns for their members.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Why Are Super Funds Moving Away From the ASX?<\/strong><\/h2>\n\n\n\n<p>Super funds have long played a key role in Australia\u2019s financial markets, investing billions into local companies to fuel economic growth. However, as these funds continue to grow in size, they face a critical issue\u2014investing too much in Australian-listed stocks could limit their ability to achieve strong long-term returns.<\/p>\n\n\n\n<p>AustralianSuper\u2019s Head of Equities, Peter Schroder, explained that while Australian assets will always be a major part of <a href=\"https:\/\/en.econostrum.info\/au\/ca-anz-urges-government-superannuation-tax\/\" data-type=\"post\" data-id=\"101091\">superannuation <\/a>portfolios, the sheer size of investments is making it increasingly difficult to outperform the market.<\/p>\n\n\n\n<p><em>“It will always be the case that Australian assets form a large part of a super member\u2019s assets,”<\/em> Schroder said. <em>“It is also the case that our internalised Aussie equities team is getting close to scale. They will be managing $100 billion, and it will be difficult after that to achieve an active outperformance.”<\/em><\/p>\n\n\n\n<p>As super funds grow, they need to find new markets to continue delivering competitive returns. The United States, Europe, and Asia have become attractive destinations for investment, offering a broader range of opportunities and higher growth potential in various industries.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What This Means for Australian Investors and the Economy<\/strong><\/h2>\n\n\n\n<p>The shift in investment strategy could have long-term implications for both superannuation members and the <a href=\"https:\/\/en.econostrum.info\/au\/rba-cut-interest-rates-economy-struggles\/\" data-type=\"post\" data-id=\"100784\">Australian economy<\/a>. On one hand, diversification into global markets allows super funds to spread risk and protect members’ savings from downturns in any single economy.<\/p>\n\n\n\n<p>As Schroder highlighted, this change is ultimately beneficial for both investors and the country as a whole.<\/p>\n\n\n\n<p><em>“This is a good thing for our members, and our country,”<\/em> he said. <em>“Having the opportunity to put our members\u2019 capital to work anywhere around the globe improves overall diversification and offers opportunities to improve risk-adjusted returns. Looking at the US, for example, we have around $105 billion invested there.”<\/em><\/p>\n\n\n\n<p>However, less capital flowing into<strong> the ASX <\/strong>could impact liquidity and valuations for Australian companies. With fewer large investments from super funds, some ASX-listed businesses may need to seek international capital or expand their global presence to remain attractive to institutional investors.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Australia\u2019s biggest super funds are nearing their ASX investing limits, prompting a shift toward global markets to maintain strong returns for members.<\/p>\n","protected":false},"author":4,"featured_media":101629,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-102337","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33","no-featured-image-padding"],"_links":{"self":[{"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/posts\/102337","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/comments?post=102337"}],"version-history":[{"count":1,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/posts\/102337\/revisions"}],"predecessor-version":[{"id":102339,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/posts\/102337\/revisions\/102339"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/media\/101629"}],"wp:attachment":[{"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/media?parent=102337"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/categories?post=102337"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/tags?post=102337"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}