A decade of super-charged investment in infrastructure and green energy assets

APRA-regulated superannuation funds have substantially ramped up their investments in infrastructure and in renewables over the past decade, according to new analysis from The Association of Superannuation Funds of Australia (ASFA).

As part of a series of ASFA research reports examining super’s role in funding the Australian economy, ASFA found super funds’ total investment in infrastructure assets had reached $165 billion (8% of total assets) by 2022, up from $30 billion (or 3% of assets) in 2010. (Refer to Chart 1).

“Only a third of funds had exposure to infrastructure assets in 2010, but now exposure to infrastructure assets is the rule rather than the exception,” said ASFA CEO Dr Martin Fahy.

“Australian super funds are increasing investment in the infrastructure of the future, and critically, in the renewable energy space as we transition to a net-zero economy.”

ASFA analysis found that super funds’ energy-related investments have shifted significantly towards renewables in the past decade. Super funds’ investments in renewable electricity generation have increased markedly over the past few years – particularly funds’ direct holdings of renewable generation assets (refer to Chart 2).

“The pace of transition into sustainable investments is speeding up in response to a myriad of external factors, but ultimately, these investment decisions are delivering to the best financial outcome for members,” Dr Fahy concluded.

For further information, please contact:
ASFA Media team, 0451 949 300.

About ASFA
ASFA is the peak policy, research and advocacy body for Australia’s superannuation industry. It is a not-for-profit, sector-neutral, and non-party political, national organisation. ASFA’s mission is to continuously improve the superannuation system, so all Australians can enjoy a comfortable and dignified retirement.