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· Posted on
February 21, 2024

Big boi of super AustralianSuper reckons it could hit $1 trillion in funds under management in less than 20 years

Australia's biggest super fund, AustralianSuper reckons member funds could hit $1 trillion in less than 20 years.

What's the key learning?

  • AustralianSuper has around 2.7 million members and $260 billion in funds under management, but it reckons that figure could hit $1 trillion in less than 20 years
  • As super funds continue to grow, they are playing an even more pivotal role in capital markets
  • Super funds regularly receive contributions from members, which need to be invested to produce returns for members
  • Often, these investments are in traditional assets, but venture capital funds are also becoming increasingly popular investment options.

👉 Background: AustralianSuper is the nation's biggest super fund, with around 2.7 million members and $260 billion in funds under management right now.

👉  What happened: It looks like it's only getting bigger. AusSuper has revealed that its members' funds could hit $1 trillion in less than 20 years.

👉 What else: With the super industry continuing to grow at such a fast pace, it's beginning to play an even bigger role in capital markets and the investment world.

What's the key learning?

💡While you may think of super funds as just a nest egg generator for your 60s and beyond, super also plays a pivotal role in capital markets. That's the part of the financial system that's all about big investments and raising capital for corporate deals, listed companies or even state governments.

💡Super funds regularly receive contributions from members - which'll only get bigger as the super guarantee rises to 12% by 2025. All that juicy cash needs to be invested somewhere to generate returns for fund members. Often it's invested in traditional assets, like toll roads or railways.

💡Buuut some super funds also invest in venture capital funds. By 2035, super funds are expected to hold around $7 trillion. AusSuper is still expected to have more funds under management than anyone else, just like it does now, meaning it'll be cashed up and ready to invest in different ventures.

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