Updated
Updated · Bloomberg · Jun 24
Australian Retirement Trust Boosts A$370 Billion Fund's Private Markets Bet as Inflation Cools
Updated
Updated · Bloomberg · Jun 24

Australian Retirement Trust Boosts A$370 Billion Fund's Private Markets Bet as Inflation Cools

1 articles · Updated · Bloomberg · Jun 24

Summary

  • Australian Retirement Trust is raising exposure to long-duration assets, with private markets now a key focus for the nation’s second-largest pension fund.
  • Cooling inflation in both the US and Australia is driving the shift, as the fund positions for assets it expects to perform better in a lower-inflation environment.
  • Andrew Fisher, ART’s head of investment strategy, called private markets among the “easiest and most obvious” opportunities.
  • Private equity, infrastructure and real estate are the main targets for the A$370 billion ($256 billion) fund’s allocation shift.

Insights

As pension funds go private, are they creating higher returns or just hiding risk from public view?
When pension funds own a nation's airports and power grids, who ensures the public interest is still served?
With easy money gone, can private equity still deliver superior returns through operational skill alone?