BlackRock’s Head of Australasia, Jason Collins, joined ASFA CEO Mary Delahunty on the Voice of Super podcast for an insightful discussion about how super funds and asset managers can work together to unlock Australia’s productivity potential. With BlackRock investing around $280 billion in Australia, most of it sourced from offshore, Collins brings a global perspective on what it will take to attract more capital and how super can be part of the solution.
As Australia navigates a critical phase of economic reform, this year’s Treasurer’s investor and economic roundtables have sharpened the national focus on productivity. Representing the superannuation sector at the table, ASFA is helping to shape the conversation around how long-term capital can be mobilised to support national priorities.This elevated focus on productivity aligns with the long-standing global recognition of Australia’s superannuation system as a model for harnessing retirement savings to support economic resilience.
BlackRock’s founder, Larry Fink, has been outspoken on the topic of retirement globally, and over 50% of the firm’s assets under management is retirement money. Collins notes that in one of Fink’s annual letters to CEOs and chairmen, he highlighted Australia’s retirement system, citing its impressive savings pool and policy foresight as a benchmark for other nations.
Following are three of the themes discussed that reflect the evolving role of super in shaping Australia’s economic reform agenda.
A new era of collaboration in superannuation investing
The superannuation landscape has undergone a dramatic transformation over the past decade. Consolidation has reduced the number of APRA-regulated funds from nearly 400 to under 100, and the top ten funds now manage around 50% of the sector’s assets. This has been accompanied by a significant increase in internalisation, with many large funds now managing 30% to 70% of their assets in-house.
This shift has redefined the relationship between asset managers and super funds.
“In the past, we were more of a supplier,” Collins said. “Today, we are seen as a peer organisation and a partner.” He described how BlackRock’s role has evolved from selling its services to Australian funds to now “selling Australia to BlackRock”, advocating for local investment opportunities to global capital pools.
The change has also been driven by policy reform, including the Productivity Commission’s benchmarking work.
“Directionally, it was 100% correct,” Collins said, noting that the focus on performance and efficiency has helped shape a more sophisticated and globally competitive super sector.
Infrastructure is the productivity lever that needs urgent capital
When asked which sectors most need investment to unlock productivity, Collins was unequivocal: infrastructure. From energy transition to digital connectivity, the scale of capital required far exceeds what traditional sources (governments and banks) can provide.
“The quantum of capital actually breaks traditional finance models,” he said. “You’ve got ageing populations, and in Australia, a revenue base really reliant on personal income tax.”
With deficits forecast for the coming years, Collins argued that super funds and global investors must step in to fill the gap.
He pointed to the need for better policy settings to crowd in capital from sovereign wealth funds, pension schemes and retail investors.
“There are pools of capital around the world… looking for opportunities in infrastructure,” he said. “It comes down to a risk-return scenario and the policy settings to enable that.”
Retirement innovation and private markets are the next frontiers
As more Australians retire with meaningful super balances, the focus is shifting from accumulation to decumulation. BlackRock has responded by partnering with Generation Life to offer annuity-based products tailored to the Australian market.
“We were very developed with decumulation solutions in the US, but we couldn’t crack the code here,” Collins said. “The tax system’s very complex. Super’s complex. Social security is complex.”
Rather than build a solution from scratch, BlackRock chose to partner with an established local player. “We just decided the best way to bring in some expertise in a really fluid area of policy was to form a partnership,” he said. The goal is to help retirees spend with confidence, something Collins described as “good for the economy.”
He also highlighted the importance of education, referencing BlackRock’s US-based “Life Path Paycheck” program, which helps individuals understand retirement income products well before they retire.
Private markets are another area of growing importance.
Collins praised ASIC’s recent work in this space, calling the discussion paper “an incredible read.” He noted that Australia is mirroring global trends, with fewer public listings and more capital flowing into private assets.
“More than half of our investment team in Australia is now either infrastructure, private debt, private equity or real estate,” he said. BlackRock has made significant acquisitions in this space, including Global Infrastructure Partners and HBS.
“It’s not a matter of private or public,” Collins added. “It’s a matter of elevating both.”
🎧Interested to know more?
To hear Jason Collins and Mary Delahunty’s full discusion on the future of super, productivity and investment, listen to episode 7 of Voice of Super on the ASFA website.
