Super's US 'chaos' challenge
The limited scale of domestic markets has led Australia's super funds to boost US investments, but the new Trump administration and greater scrutiny of private assets present major risks.
Superannuation funds used to be criticised for overexposure to the Australian economy. Now, as key figures from the $4 trillion industry descend on Washington DC this week, it's their exposure to the United States that's under the spotlight.
According to the Australian Superannuation Investment Summit delegation visiting the US, one in every $5 in super savings is now invested in the world's largest economy — that’s about $800 billion.
But while the US has been a great driver of returns in the recent past, there are now serious concerns that US President Donald Trump's second term agenda could threaten them.
“The Trump presidency introduces significant uncertainty," Frontier Advisors director of investment strategy Chris Trevillyan told Capital Brief.
