In today’s investment landscape, volatility is more the norm than the exception. From geopolitical shifts and policy uncertainty to the accelerating demands of the digital economy, superannuation funds are navigating a complex environment that requires both resilience and innovation.
Yet within this turbulence lies opportunity. Investment leaders across the super sector are rethinking strategy, re-evaluating risk, and identifying new pathways to long-term value.
In ASFA’s podcast for the superannuation sector Voice of Super, legalsuper’s Chief Investment Officers Andrew Lill, and Marigold Look, Executive Director of Infrastructure at IFM Investors discussed several key themes that are shaping the future of investment decision-making.
Strategic response in times of market disruption
Periods of disruption, such as this year’s “Liberation Day”, serve as real-time tests of investment discipline. For Chief Investment Officers like Andrew Lill of legalsuper, these moments are not about improvisation, but execution.
“This is when investment teams go from training to match day,” says Lill. “You rely on the culture, governance, and data infrastructure you’ve built, and you act decisively.”
The ability to respond effectively in volatile conditions depends on three core pillars:
- Culture: A collaborative, inclusive environment that values diverse perspectives.
- Governance: Clear delegation and communication channels that support rapid decision-making.
- Technology and Data: Real-time visibility across multi-asset portfolios to understand exposures and opportunities.
These foundations allow funds to remain focused on member outcomes, even when markets are unpredictable.
Infrastructure and resilience across cycles
Infrastructure has long been a keystone of superannuation portfolios, and its relevance is only growing.
With decades of performance data, infrastructure assets have demonstrated resilience across economic and political cycles, from tariff shocks to inflationary pressures.
Marigold Look, Executive Director of Infrastructure at IFM Investors, emphasises the asset class’s durability.
“Infrastructure performs well in volatile environments,” she notes. “Its long-term nature and inflation-linked returns make it a stabilising force in portfolios.”
This resilience is particularly valuable as global policy uncertainty, especially in the US, continues to challenge investor confidence. Infrastructure offers a way to anchor portfolios while still pursuing growth.
The convergence of renewables and digital infrastructure
One of the most compelling investment trends is the convergence of renewable energy and digital infrastructure. The rise of AI and data centres has created unprecedented demand for power, and renewables are emerging as the most cost-effective and sustainable solution.
“Generative AI is incredibly energy-intensive,” says Look. “A single query can consume ten times the power of a standard internet search.”
This energy intensity is driving hyperscale tech companies to co-locate data centres with renewable energy projects, creating a new model for infrastructure investment. Australia, with its abundant solar and wind resources, is well-positioned to lead this transformation, but challenges remain.
Grid connectivity, regulatory alignment, and permitting processes must evolve to support this convergence. However the opportunity is clear: to become a regional hub for digital infrastructure powered by renewables.
Australia’s strategic role in the Asia-Pacific
With volatility in the US and rising demand across Asia, Australia has a unique opportunity to position itself as a leader in digital infrastructure. Recent announcements such as Amazon’s $20 billion investment in Australian data centres and solar farms signal growing momentum.
“Australia has the capital and the intent,” says Lill. “We just need to align the various elements of government and infrastructure.”
The “follow the power” model where data centres are built adjacent to renewable energy sources is gaining traction globally. Australia can embrace this trend while also upgrading its grid to support broader connectivity.
This is not just a commercial opportunity. It’s a strategic imperative for national competitiveness in the digital age.
Small funds, big impact: Agility as an advantage
While large institutional funds often dominate headlines, boutique funds are proving that strategic clarity and agility can deliver outsized returns. Legalsuper’s recent performance topping industry charts is a case in point.
“Success isn’t about size,” says Lill. “It’s about knowing your identity and playing your game.”
Lill says smaller funds can:
- move quickly on niche opportunities, including small caps and emerging sectors
- tailor strategies to specific member cohorts
- deliver high-touch service that builds trust and engagement.
This member-first approach is a hallmark of the Australian superannuation system and a source of competitive advantage in volatile markets.
Looking ahead: Investment strategy in a changing world
As the super sector looks to the future, several strategic imperatives are clear:
- Embrace infrastructure and renewables as resilient, long-term assets
- Leverage digital transformation to identify new investment opportunities
- Stay agile and member-focused, regardless of fund size
- Advocate for policy alignment to unlock national potential in energy and data.
Volatility may be inevitable, but with the right strategy, it can become a catalyst for innovation and growth.
🎧Want to know more?
Voice of Super podcast: Tune into episode #6 of Voice of Super, where Andrew Lill and Marigold Look join ASFA CEO Mary Delahunty to delver deeper into the themes of resilience, renewables, digital disruption, and agile investing.
