Why Australia’s Superannuation Investment Offices Need a Rethink and What Global Leaders Already Know
Australia’s superannuation sector manages over AUD 3.5 trillion in assets. On paper, it’s one of the most sophisticated pension systems in the world. But behind the scenes, too many investment offices remain bogged down in compliance, benchmark hugging, and execution inertia.
Our latest white paper, Australia’s 3 Trillion Dollar Opportunity: Rebuilding the Superannuation Investment Function for Performance, makes the case for urgent reform. It’s not a critique for critique’s sake; it’s a playbook for unlocking real performance.
The Problem? It’s Not the Markets. It’s the Machine.
Most super funds aren’t failing because of poor investment ideas. They leak value through outdated mandates, fragmented governance, and passive execution.
From underutilised FX overlays to rigid asset allocation rules that ignore capital costs, the result is consistent performance drag and missed strategic opportunity.
What’s at Stake?
- Up to 100bps or more in unrealised alpha
- Solvency risk from poor liquidity and collateral management
- Strategic blind spots in risk, treasury, and capital deployment
- A widening gap between governance intent and tactical delivery
This isn’t just a technical problem. It’s a strategic one that impacts member outcomes, fund competitiveness, and sector resilience.
What You’ll Find in the White Paper:
- Five real-world case studies highlighting inefficiencies in execution, FX, credit, and private markets
- Global best practices from Canada, the Netherlands, and the UK, showing what it looks like when capital and risk are managed dynamically
- A practical reform blueprint spanning eight strategic levers: governance, internal capability, infrastructure, capital-linked mandates, automation, and more
- How Para Bellum Advisors supports super funds in closing the Execution Gap with independent, capital markets-informed advisory
Who Should Read It?
CIOs. CROs. Investment Committee Chairs. Regulators. Treasury leads. Anyone responsible for ensuring Australia’s retirement capital isn’t just large, but effective.
Because scale alone won’t deliver strategic returns, execution will.