Superfunds

The manager has lowered the fundraising target for its Australian Farmlands Fund due to restrictions on movement, but says investor appetite for assets remains strong, especially overseas.

Senator Jane Hume, assistant minister for superannuation, argues that the early super withdrawal scheme has gone ‘exceptionally well’ to date with only 0.5% of the whole system’s assets withdrawn.

The A$52 billion industry superfund has set a target to achieve net zero emissions in its portfolio by 2050, as part of a broader Climate Change Transition Plan.

The A$53bn industry fund says it may have to invest over shorter time horizons if the early withdrawal scheme is extended, despite a desire to extend its ag portfolio.

The coronavirus-induced recession has prompted concerns the country could emulate New Zealand’s restrictive and lengthy approvals process in the long term.

Estimates suggest that anywhere between A$27bn and A$50bn could be withdrawn from superannuation funds, but there should be adequate liquidity in the system to cope.