Multi-billion dollar exposures justified attendance at US super summit
Australia’s major industry superannuation funds have emerged united on why it made sense and offered members value to attend last month’s Superannuation Summit in the US – the billions of dollars they have invested there.
The universal answer from the industry funds is that the US represents their largest investment destination, accounting for billions of dollars, and hence it justified the expense of attending.
The cost of attending the summit, organised by the US Embassy in Washington, was calculated by the various funds at around $17,000 but Australia’s largest superannuation fund, AustralianSuper, said the total travel and accommodation cost of attending the summit was approximately US$4,900.
Justifying the exercise, the fund stated to the Senate Economics References Committee: “The US is AustralianSuper’s largest investment market outside of Australia. AustralianSuper has an overseas office located in New York. Currently the fund invests more than US$80 billion of members’ assets in the US market, and this is expected to grow significantly in the future. The CE and CIO travel regularly to the US to oversee the Fund’s US operations.”
It went on to say the Summit provided AustralianSuper with cost-effective access to information and engagement that will support future investment in the US market”.
Building and construction industry fund, Cbus, provided a similar answer stating: “The US is the largest economy in the world and a key market for infrastructure, technology, and energy investments. Keeping informed about developments in such markets is essential to acting in the best financial interests of our members”.
Cbus said it was represented by its chair, Wayne Swan and the Head of Private Markets and Infrastructure, Jordan Kraiten who, additionally, had undertaken investment manager meetings and engaged with offshore pension funds as part of the trip.
Health and hospital-focused fund HESTA said it viewed the expenditure incurred on the Summit “as reasonably necessary for the prudent operation of the fund” to manage risks associated with economic events in the US.
HESTA notes the following in relation to its attendance at the Summit:
- HESTA and its members have significant portfolio exposure of more than $28b in the United States including listed and unlisted investments.
- The Summit provided participants significant opportunity to further the interests of their members through engagement with global portfolio investment managers and participation in multi-lateral discussions on investment approaches and opportunities in the US.
- The Summit provided HESTA with an ongoing understanding of the rapidly changing investment environment in the US including changes to policy which could impact HESTA’s global portfolio investments.
What a crock, nothing more than a free junket for Swanny, the country’s worst ever ‘rolled gold budget surplus’ treasurer still with his snout in the trough like he never left the public sector.
No doubt the greater bulk of the US investment exposure is outsourced to various managers…. there’s nothing at the ‘Summit’ that couldnt have been gleaned via a web based broadcast…. other than free food and drinks I guess.
Things never change.
What a witch hunt…. Of course, they should have gone to this. But I guess you reap what you sow and they have been throwing it at retail funds for too long.
If the US commenced mandatory super tomorrow. Do you think that they’d legislate the Teamsters into super fund Governance?
If not, why not?
I see more value in these engagements than Bragg or other MPs and Senators on constant tax payer funded junkets to all corners of the globe for the most flimsy of justifications and rationales.
A big wiff of stones and glass houses here.
I don’t see that at all.
Bragg has done a very good job of putting the blowtorch on the trustee belly.
I’d give him a bigger blowtorch if I could.
Not sure what Bragg’s glasshouse is, but if he has one it’s tiny compared to glasshouse he’s holding accountable.