Money Maze Podcast
155: Super Returns! Australia’s Largest Super Fund’s CIO, Mark Delaney, Describes Their Investment Priorities
Oct 10, 2024
Mark Delaney, the Chief Investment Officer of AustralianSuper, shares insights from nearly 20 years at Australia's largest super fund. He discusses the evolution of Australia’s pension industry and how consolidation has benefited pensioners. Mark highlights the importance of active management over passive strategies, emphasizing infrastructure as the 'ballast in the boat.' He also explores global equities, private equity preferences, and his unique approach to commodity exposure, all while humorously noting how even markets can't distract him while surfing!
39:20
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Quick takeaways
- The AustralianSuper fund's consolidation of smaller pension plans has led to enhanced operational capabilities and superior investment outcomes for members.
- Mark Delaney advocates for an active asset allocation strategy that adjusts based on market conditions, emphasizing long-term investment over short-term market timing.
Deep dives
Australia's Superannuation System
Australia's superannuation system has evolved significantly since its inception in the 1980s, currently mandating a contribution of 12% of salaries into pension accounts. This system aims to alleviate the burden on the government-funded old age pension and improve retirement standards for individuals, resulting in a pooled retirement savings of over AUD 340 billion for 3.4 million Australians. The success of this model has shifted Australia's economic position from a historical capital importer to a capital exporter, with pension plans investing more abroad. This transformation illustrates how collective retirement savings can positively impact both individuals' financial security and the broader economy.
