Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Home / 273

Garry Weaven on 5 areas of super investment

[Introduction: Garry Weaven chairs IFM Investors, a fund manager owned by 27 industry superannuation funds with over $100 billion in assets under management. This article reports on his presentation at the 2018 Australian Institute of Superannuation Trustees' Super Investment Conference in Cairns on 5 September 2018].


Garry Weaven started with a slide showing superannuation assets will grow from the current $2.6 trillion to $6 trillion in 2030, a more than doubling in size, while GDP would increase from $1.3 trillion to $1.9 trillion. It demonstrated super’s growing role in the Australian economy. Said Weaven:

“The business community and governments of any persuasion would be totally mad looking at those numbers not to pursue greater collaboration with super funds.”

He then identified five areas of potential growth for superannuation investment:

  • Corporate debt
  • Infrastructure
  • Residential property/affordable/social housing
  • Agriculture
  • Growing new industries

Edited transcript of Weaven's future focus on these five areas

"Generally speaking, the corporate debt field has been left to the big banks and their large credit assessment teams but the changing regulatory environment is restricting bank balance sheets from fully servicing that sector. They will focus more on lower risk or higher profit businesses. This will expand opportunities for our sector to step in, possibly in partnership with the banks. Something like $95 billion per annum is lent to non-financial corporations from the banking sector each year. It’s potentially very big business that can be addressed by us.

Second on infrastructure, almost everyone agrees we could spend hundreds of millions over the next decade if we could get the correct frameworks in place. I’ve been arguing there is a better way, a partnership approach between governments and the superannuation sector where a bargain will occur in a very transparent way about the target rate of return on particular projects with risks allocated between the parties. There would be a ceiling above which the taxpayers would share in any outperformance. The manager should not make windfall profits. The deal once negotiated would be offered to every registered superannuation fund in Australia.

Third on residential property, the first investment ever made by IFM Investors' predecessor was to assist people into affordable housing. In the thousands of seminars since, housing and affordability has got worse. It’s time something was done.

Fourth, some of you will have noticed rural politicians squawking about agriculture, lamenting the fact that superannuation funds were not investing more. The reason is very simple: the returns are very poor and the volatility is substantial due to commodity prices and drought. The reason large offshore investors are able to come in here and invest in a significant way is because they can participate in the margins of the downstream processing or distributions of the agricultural output in the destination markets – China or Canada or wherever it is. If the government wants to do something useful in the area, it should be using its trade and foreign affairs diplomacy to broker deals where the super sector could partner with some of those organisations so the returns would be more attractive.

The fifth thing is industry policy generally. A really bold view would include governments collaborating with the super industry in the development of proactive industry policy."

Weaven called for a new era of cooperation between industry funds and the Coalition:

“Over 35 years of history in the industry fund movement, we’ve hardly had a year go by where there hasn’t been some attack in one form or another from the Coalition, in either government or opposition. There could be an emergence of an opportunity for all of that conflict and opposition to finally turn to collaboration, at least to some degree, between the business community, the super sector and governments – both state and federal.”

 

Graham Hand is Managing Editor of Cuffelinks. Garry Weaven is Chair of IFM Investors. As ACTU Assistant Secretary in the 1980s, he played a seminal role in the development of the industry superannuation fund movement.

 

  •   26 September 2018
  • 1
  •      
  •   

RELATED ARTICLES

Are lifetime income streams the answer or just the easy way out?

Two Labor policies facing inadequate scrutiny

Super boost: more flexibility for retirement

banner

Most viewed in recent weeks

Want your loved ones to inherit your super? You can’t afford to skip this one step

One in five Australians die before retirement and most have not set up their super properly so their loved ones can benefit from all their hard work and savings. 

Super is catching up, but ageing is a triple-threat

An ageing Australia is shifting the superannuation system’s focus from accumulation to the lifecycle of retirement. While these pressures have been anticipated for decades, they are now converging at scale and driving widespread industry change.

Has Australia wasted the last 30 years?

The 20 years after Peter Costello left Treasury have been deemed wasted...by Peter Costello. The missed opportunities for Australia began long before.  

The 5% deposit scheme is bad for homeowners and Australia

An ‘affordability’ scheme making the county more vulnerable to economic shocks and contributing to the deteriorating financial situation of everyday Australians.

3 ways to defuse intergenerational anger

With the upcoming budget increasingly likely to include bold proposals to alter the tax code I’ve outlined three incremental steps with fewer unintended consequences.

Navigating the next stage of life in retirement

Retirement planning is more than just saving enough money. Long-term care needs, housing choices, and social networks are just as critical for a happy and enjoyable life.

Latest Updates

Superannuation

Indexation implications – key changes to 2026/27 super thresholds

Stay on top of the latest changes to superannuation rates and thresholds for 2026, including increases to transfer balance cap, concessional contributions cap, and non-concessional contributions cap.

Economy

Central banks need higher inflation targets

In a shift away from solely targeting low inflation, central banks are considering raising inflation targets to combat economic challenges, but face potential drawbacks and conflicts in policy implementation.

Exchange traded products

The missing 30%: how LIC returns are understated, and why it matters

The perceived underperformance of LICs compared to ETFs is due to existing comparison data excluding crucial information, highlighting the need for proper assessment and transparent reporting.

Latest from Morningstar

Alpha isn’t dead. You’ve just been measuring it wrong

New research shows smarter portfolio construction—not new factors—is the real edge in the hunt for alpha. However, finding it requires a fundamentally different mindset.

Investment strategies

The diversification illusion: why 'balanced' portfolios may be exposed

Many 'diversified' portfolios are increasingly driven by the same narrow set of forces. As concentration builds beneath the surface, understanding how portfolios behave - not just how they’re constructed - is critical for investors.

Investment strategies

The case for staying the course in credit

Rising oil prices and inflation pushed Australian yields higher. Markets expect further tightening, but weaker growth may reverse rates. Locking income and maintaining duration is a sound strategy for widening credit spreads.

Investment strategies

One risk after another

Investors often focus on front-of-mind risks, reacting to each headline event without considering long-term impacts. Cass Sunstein and Timur Kuran define this as an "availability cascade," affecting financial decision-making.

Sponsors

Alliances

© 2026 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.