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Australia's biggest pension fund flags equities risks and eyes U.S. infrastructure

Thursday, July 27, 2017 - 01:01

AustralianSuper looks to invest more money in U.S. infrastructure, expecting the global equities market to cool down. No reporter narration.

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(ROUGH CUT - NO REPORTER NARRATION) Australia's largest pension fund, AustralianSuper, is preparing for the end of the global equities run and looking to infrastructure opportunities in the United States where it believes foreign firms will in time gain greater access. AustralianSuper is a A$120 billion ($96.6 billion) fund that seeks out major positions, chief executive Ian Silk said at a Reuters Newsmaker event on Thursday (July 27) in Sydney, that can affect its burgeoning book. Silk said an equities rally - Australia's benchmark has gained 43 percent since 2012 and the MSCI World Index has risen 67 percent over the same period - and recent strong Australian property price rises were being monitored and managed. Silk said that U.S. President Donald Trump's $1 trillion infrastructure plan represented an opportunity even if it was unclear if and how the plan would operate. He felt that any concerns against foreign investment in the United States would be overcome by its immense need to improve its infrastructure. In a quest to reduce fees and improve returns, AustralianSuper is building its internal management capability, as opposed to only awarding mandates to external managers.

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Australia's biggest pension fund flags equities risks and eyes U.S. infrastructure

Thursday, July 27, 2017 - 01:01