Cath Bowtell: The appetite for genuine collaboration is real
The chair of IFM Investors – the asset manager that is 90% owned by Australian pension schemes and 10% owned by the UK’s Nest – says the conditions are right for a stronger, more deliberate investment partnership between Australian superannuation funds and the UK economy.
The conversation between Australia and the UK around long-term investment is entering a new phase – one grounded in shared opportunity and a common recognition of what's needed to deliver sustainable economic growth.
At this week's Australian Superannuation Mission and Regional Investment Summit, I joined members of the UK government, industry, and the Australian and UK pension sectors to explore how Australia's growing pool of pension capital can play a more active role in supporting infrastructure and economic development in the UK, while boosting the retirement savings of millions of working people.
Australia's superannuation system is now one of the largest and fastest-growing in the world. With over A$4.3trn (£2.1trn) in assets under management and inflows of around A$4bn (£2bn) every week, the system is on track to become the second-largest globally by the early 2030s.
This scale brings with it both responsibility and opportunity. As Australian funds seek to diversify and deploy capital globally, to bring returns for their members, the UK stands out – not only because of its need for long-term investment in sectors like energy, transport, and social infrastructure, but because of the long-standing ties and shared policy ambitions that make partnership both practical and strategic.
And it's not just the scale or growth trajectory of Australian super funds that make them a great investment partner, but their characteristics: investing the retirement saving of millions of workers, they have led the way as long term investors in infrastructure and therefore take a long-term view that can be measured in decades.
Australian capital is already making an impact in the UK. One example is IFM Investors' stake in Manchester Airports Group (MAG), which owns Manchester, Stansted and East Midlands airports. These assets are essential parts of the UK's transport and trade networks-and the investment is focused not just on growth, but on resilience, sustainability, and long-term economic contribution.
The £1.3bn expansion of Manchester Airport is nearing completion, increasing capacity to 42 million passengers per year and improving passenger experience. Meanwhile, a proposed £1.1bn investment in Stansted Airport would support a significant expansion, create over 5,000 jobs, and double the airport's annual economic contribution to £2bn.
These are the kinds of long-term investments that pension capital is uniquely placed to support-focused on essential infrastructure, steady returns, and public benefit.
But the summit wasn't only about showcasing investment opportunities. It also reflected a broader policy conversation now gaining momentum in the UK: how to better harness defined contribution (DC) pension savings to support national development.
Australia's experience in building a mature, compulsory DC system over three decades is increasingly seen as a valuable reference point. From fund consolidation to performance benchmarking and value-for-money metrics, UK policymakers are clearly paying close attention to the Australian model.
The Pension Schemes Bill, currently before the UK Parliament, includes several elements inspired by Australia's approach: a proposed £25bn scale test, net returns as the primary performance benchmark, and the development of value for money (VfM) frameworks. These tools are designed to drive better outcomes for members while also opening the door for funds to participate more confidently in long-term, illiquid investments like infrastructure.
Of course, the UK will chart its own path – adapting these ideas to its distinct market and regulatory environment. But there is a clear opportunity to build on the structural similarities between the two systems and to collaborate on the development of analytical capabilities, particularly around forward-looking return assessments and portfolio construction in private markets.
This growing alignment is not just economic – it's strategic. In a geopolitical context increasingly defined by shifting alliances and new global challenges, Australia and the UK are working more closely than ever. The AUKUS partnership is one reflection of this trend. A deeper investment relationship – anchored in shared values, mutual benefit, and long-term thinking – can and should be another.
As a representative of pension funds that are committed to investing working people's retirement savings in the very long term, I left the summit with optimism. The appetite for genuine collaboration is real, and the conditions are right for a stronger, more deliberate investment partnership between Australian superannuation funds and the UK economy.
There is much to learn from each other - and even more to gain from working together.
Cath Bowtell is chair of the board at IFM Investors
