A new $500 million offshore investment by AustralianSuper has ignited debate over whether the nation\u2019s retirement pool should be building local infrastructure rather than funding projects in India.<\/p>\n
The new cash injection from AustralianSuper was hailed by Anthony Albanese on Thursday, as he hosted India PM Narendra Modi in Melbourne.<\/p>\n
\u201cI welcome the announcement we have had this morning from AustralianSuper that they will invest an additional $500 million into India\u2019s National Investment and Infrastructure Fund (NIIF),\u201d Mr Albanese said.<\/p>\n
Mr Modi also praised the move, calling it \u201cyet another glimpse of the global confidence in India\u2019s growth and reform trajectory\u201d. <\/p>\n
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The Albanese government has been proactive in strengthening ties with India, which recently overtook England as Australia\u2019s largest source of migrants as the Indian-born population nears 1 million people. <\/p>\n
Mr Modi enjoyed a rock star-like reception in Melbourne, with more than 30,000 members of the Indian-Australian community packing out Marvel Stadium to hear him speak, while the event also drew human rights campaigners and anti-immigration protesters. <\/p>\n
The two leaders signed a deal to export Australian uranium to India for use in the nuclear energy industry, and agreed to deeper co-operation across defence, critical minerals and space technology. <\/p>\n
AustralianSuper\u2019s $500 million move brings its total investment in Indian infrastructure to $740 million. <\/p>\n
It committed $240 million to the NIIF seven years ago, later describing that initial buy as one of the fund\u2019s best performing infrastructure investments. <\/p>\n
All up, the fund has almost $3 billion worth of investments in India out of its $410 billion portfolio. <\/p>\n
Many fund managers view India as a stellar market due to its favourable demographics and rapid economic growth.<\/p>\n
But conservative commentator Prue MacSween argued AustralianSuper\u2019s funds were better invested locally.<\/p>\n
\u201cMr Albanese is crowing that his union mates at AustralianSuper are investing an additional $500 million in India\u2019s National Investment and Infrastructure Fund,\u201d Ms MacSween wrote online, referring to AustralianSuper CEO Paul Schroder\u2019s background as a former trade union official.<\/p>\n
\u201cThis fund has now invested $3 billion in India – money that this pension fund could have invested in badly-needed Australian infrastructure – all to win Labor kudos and votes from the 1 million Indians now living here.\u201d<\/p>\n
But investing Australia\u2019s superannuation in domestic infrastructure is a highly debated topic in and of itself. <\/p>\n
Super funds are legally required to prioritise member returns, amid warnings from the sector that using the $4.5 trillion pool for government nation-building projects could severely drag down retirement balances.<\/p>\n
Mr Schroder has previously described the idea of governments intervening in superannuation investments as an \u201cutter disaster\u201d.<\/p>\n
In response to Ms MacSween\u2019s concerns, an AustralianSuper spokesperson said the fund invests \u201cmore than $170 billion in Australian companies, supporting Australian jobs because we believe in the Australian economy\u201d.<\/p>\n
\u201cWe also invest around the world to bring money back for members\u2019 retirement savings,\u201d the spokesperson said. <\/p>\n
\u201cThat means investing in the United States to get the best returns from tech companies, and investing in Europe and emerging markets.<\/p>\n
\u201cWe have been very clear that governments should not tell super funds where to invest members\u2019 money. <\/p>\n
\u201cWe\u2019ll keep investing around the world, bringing home dollars for AustralianSuper members so they can enjoy their best lives in retirement.\u201d<\/p>\n