Despite ongoing market turbulence sparked by trade tariffs, AustralianSuper, Australia’s largest superannuation fund, remains steadfast in its commitment to US investments, emphasizing the nation’s long-term appeal for capital growth. Mark Delaney, Chief Investment Officer of the fund, which oversees A$367 billion ($223 billion) in assets, affirmed that the US continues to be the most attractive region for international investments, regardless of recent market volatility.
Delaney acknowledged the market upheaval caused by tariff announcements, describing it as a “significant volatility event.” However, he stressed that the US economy’s fundamentals—strong productivity growth, solid profit expansion, and a robust selection of top-tier companies—still make it a prime destination for long-term investment. He revealed that more than half of AustralianSuper’s international portfolio is already concentrated in the US, and that allocation remains unchanged despite recent developments.
“The US has a lot positive going for it—strong economic performance, strong productivity growth, strong profit growth, and, by any measure, many of the best companies in the world,” Delaney explained in an interview with the Financial Times. “It’s an attractive place to store capital.”
Delaney emphasized the importance of focusing on medium- and long-term investment drivers rather than reacting to short-term volatility. “It’s very hard to anticipate how events are going to unfold. You are much better to focus on the medium and longer term drivers,” he added. More than half of AustralianSuper’s international flows will continue to be directed to the US, with the remainder allocated across other global markets.
Delaney’s comments come as trade tensions and US President Donald Trump’s tariffs have cast uncertainty over global markets, prompting questions about the future of US investments. Following Wednesday’s tariff announcement, the S&P 500 index of blue-chip stocks plummeted by more than 11 percent, and long-term US Treasuries saw a decline as investors demanded higher returns for more volatile debt.
Australian superannuation funds, among the largest and fastest-growing retirement savings pools worldwide, have significantly increased their international investments in recent years. Research by infrastructure giant IFM estimates that Australian pension fund investments in the US could exceed US$1 trillion over the next decade, up from US$400 billion, with US$240 billion potentially directed into private markets.
AustralianSuper plans to allocate approximately 70 percent of its future inflows to international markets. It also intends to increase its exposure to private equity from 5 percent to 8 percent over the next five years, primarily through its New York office.
However, not all investors share AustralianSuper’s confidence in US assets. David Colosimo, head of fixed interest at UniSuper, expressed reservations about continued US exposure, citing a growing skepticism toward US investments due to the uncertainty generated by the Trump administration’s policies. “I think we’ve seen peak investment in US assets,” Colosimo said in a podcast, adding that Trump’s economic policies had been “horrible for business.”
Despite these concerns, Delaney remained optimistic, noting that while global trade dynamics are evolving, the fundamental business landscape for investors has not shifted drastically. He pointed out that many of the largest companies he targets for investment operate in the services sector, rather than dealing directly in goods, which makes them less susceptible to tariff-driven disruptions. “Look at any investor’s major holdings. There aren’t that many goods, it’s mostly services, that’s the way the global economy has evolved,” Delaney concluded.
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