Industry super funds are poised to spend $19.5 billion on projects across Australia as part of a three-year investment pipeline that will create more than 200,000 jobs.
The capital expenditure was identified as part of a comprehensive survey of industry super funds, IFM Investors and Industry Super Property Trust (ISPT).
The projects will be a key feature of a new advertising campaign fronted by Industry Super Australia (ISA) chair Greg Combet, which highlights how Industry SuperFunds’ investments will help get member balances and the economy growing again.
The projects include new commercial construction, redevelopments, public infrastructure upgrades and making assets more energy efficient.
Industry super fund members already collectively own more than $104 billion in Australian infrastructure, property, and other physical assets. These investments create jobs and drive productivity and growth.
The profits generated by these investments have been critical to the good performance of the funds with members reaping the benefits through strong returns. Analysis shows that $100 invested in unlisted assets 15 years ago is now worth $510, in comparison $100 invested in international shares would be worth $351 now.
The survey has also revealed the funds are venturing into new investment opportunities across many sectors – ploughing billions into aged care, affordable housing, direct lending to business and agriculture.
Since the Covid-19 downturn Industry SuperFunds have poured hundreds of millions into the balance sheets of good Australian business, this helps them to rebuild and to expand operations.
And there could be billions more to come, at the end of the Global Financial Crisis superannuation funds provided a significant portion of the $120 billion in capital raised by local businesses.
Industry super funds hold a major stake in Australia’s economic life. They invest in Australian listed companies – holding 10 per cent of the ASX – are active in debt markets, have significant infrastructure and property holdings and invest in the wider Australian financial system.
The super system needs a strong Australian economy to deliver for members, and the economy needs a strong super system to support its recovery.
The campaign (which can be seen here: https://youtu.be/RoRYeb7Mmeg) will run across mass media markets including broadcast TV, digital and catch-up TV, online, throughout social media and more.