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

Ray Dalio on 2025’s real story, Trump, and what’s next

The renowned investor says 2025’s real story wasn’t AI or US stocks but the shift away from American assets and a collapse in the value of money. And he outlines how to best position portfolios for what’s ahead.

Making sense of record high markets as the world catches fire

The post-World War Two economic system is unravelling, leading to huge shifts in currency, bond and commodity markets, yet stocks seem oblivious to the chaos. This looks to history as a guide for what’s next.

3 ways to fix Australia’s affordability crisis

Our cost-of-living pressures go beyond the RBA: surging house prices, excessive migration, and expanding government programs, including the NDIS, are fuelling inflation, demanding bold, structural solutions.

Is there a better way to reform the CGT discount?

The capital gains tax discount is under review, but debate should go beyond its size. Its original purpose, design flaws and distortions suggest Australia could adopt a better, more targeted approach.

How cutting the CGT discount could help rebalance housing market

A more rational taxation system that supports home ownership but discourages asset speculation could provide greater financial support to first home buyers.

Welcome to Firstlinks Edition 648 with weekend update

This is my last edition as Editor of Firstlinks. I’m moving onto a new role though the newsletter will remain in good hands until my permanent replacement is found.

  • 5 February 2026

Latest Updates

Property

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.

Investment strategies

Is defensive the new offensive?

Relatively boring, unglamorous, defensive stocks like Kroger and Allstate have quietly outperformed gilded tech giants, offering steady growth, visibility, and resilient returns in a market captivated by AI and flashier industries.

Shares

How the RBA scores on its inflation goal

The Reserve Bank continues to face criticism from all sides. A reminder of the RBA's mandate and a review of their track record in maintaining price stability since the early 1990s.

Investment strategies

Levered credit: A late cycle ingredient for drawdown pain

As credit spreads normalised through 2025, yield‑hungry investors have turned to leverage for high returns, uncomfortably echoing pre‑GFC behaviours. Investors need to be careful to understand the true risk‑return trade‑off.

Planning

The more things change… longevity just goes on increasing

Australia needs a major shift in longevity awareness, attitudes and behaviour if, as a community, we are to reap the benefits of increasing longevity. Adopting a national strategy is well overdue.

Property

The improving outlook of Australian commercial real estate

The sector is positioned to benefit from defensive and resilient income streams supported by embedded rental increase opportunities. 

Property

Seize hidden opportunities among 50+ home buyer schemes in Australia

There is a laundry list of government schemes to help Australian's struggling with housing affordability. Savvy buyers should take advantage to break into the property market.

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.