The UK government has launched a dedicated Supers Unit to help Australian superannuation funds identify and progress investment opportunities in the UK.
The unit will sit within the Office for Investment, a joint operation between HM Treasury, the Department for Business and Trade, and 10 Downing Street. The government has identified clean energy, infrastructure, housing and innovation as priority areas for investment.
IFM Investors, which is owned by industry superannuation and pension funds, welcomed the move, arguing that the UK remains an attractive destination for long-term capital because of its mature infrastructure market, stable regulatory environment, and pipeline of suitable assets.
Australian superannuation funds are already significant investors in the UK. IFM said that, as of mid-2025, Australian pension funds had invested £41bn in the UK, with capital supporting energy, transport, digital and social infrastructure.
It added that more than £2.1bn flows into Australia’s superannuation system each week, with more than 60 cents of every new dollar of retirement savings invested overseas. Over the next five years, Australia’s pool of superannuation capital is expected to become the second largest outside the US.
It said UK investment by Australian funds is expected to grow further, with more than £99bn projected to be deployed over the next decade.
The move builds on a wider push to strengthen pension investment links between the UK and Australia. This included the signing of the Australia-UK Pensions Investment Memorandum of Understanding by chancellor Rachel Reeves and Australian treasurer Jim Chalmers.
It also follows NEST becoming an owner of IFM Investors. Funds managed by IFM have also recently agreed to acquire the remaining 50 per cent equity interest in UK-headquartered renewable energy platform Nala Renewables, and completed the acquisition of Briggs Equipment UK.
David Whiteley, head of global external relations at IFM Investors, said: “Super is built to deliver workers a decent retirement after years of hard work. This means finding high-quality, resilient opportunities across the world.
“For Australian funds, the UK is a natural partner: it’s a familiar market with a deep pipeline in the energy transition and essential infrastructure, and sophisticated pensions system.”
AustralianSuper deputy CIO and head of international Damian Moloney said: “The UK has been a key investment hub and base for operations for the Fund for a decade, and we now have more than £29 billion of member funds currently invested in the UK and Europe. We look forward to continuing our strong working relationship with the UK government to ensure the best investment outcomes for the Fund’s 3.7 million members.”
UK minister for investment Lord Stockwood said the Supers Unit would help deliver “vital investment into key UK projects”, while strengthening the UK’s trade relationship with Australia.
Australian Retirement Trust, Aware Super, HESTA and the Super Members Council also welcomed the initiative, highlighting the role of global diversification in supporting long-term retirement outcomes.