Aviva Investors, a London-based asset management company, is actively seeking partnerships with Australian pension funds for private investment opportunities in the UK and Europe. This initiative is driven by the growing pool of retirement savings in Australia, attracting international investors.
The company, which oversees assets worth 262 billion euros globally, is in discussions with several funds regarding co-investments in logistics centers and residential projects. Tom Graham, the Head of Real Asset Equity Specialists at Aviva, mentioned that they are exploring deals up to the value of A$1 billion.
Aviva Investors, a subsidiary of Aviva Plc, aims to deepen its engagement with the A$3.7 trillion Australian pension fund sector, which has seen an increase of approximately A$1 trillion since 2019. The firm's strategy includes doubling its real assets portfolio, currently valued at 48 billion euros, within the next five years.
Graham, who recently met with fund managers in Melbourne and Sydney, expressed the need for large-scale, global operations to achieve this growth. He noted that Australian pension funds are now comparable in size and scale to major Canadian, European, and Middle Eastern sovereign wealth funds.
AustralianSuper, Australia's leading pension fund, has committed to investing over 8 billion pounds in the UK over the next six years. Aware Super is another fund expanding its presence in London, with ongoing recruitment to support its growth. Graham highlighted significant investment opportunities in residential and logistics sectors in Spain, the UK, and across Europe, driven by supply shortages.
With Australian pension assets expected to surge to A$13.6 trillion by 2048, the UK pension industry is also adapting to increase investment within the country. However, the UK's transition to a defined contribution system presents challenges in matching the capital scale of Australia's pension funds.
Graham emphasized the legal and tax frameworks of the UK as advantageous for Australian super funds seeking diversification, positioning the UK as an attractive destination for their capital.
