National Australia Bank’s latest “Super Insights Report” found that the A$3 trillion ($1.96 trillion) regulated by the Australian Prudential Regulation Authority superannuation industry now has more than 50% of its assets invested overseas.
The report drew on survey responses from 37 Australian superannuation funds, representing more than 80% of the industry’s assets under management.
According to NAB, the findings highlighted that the sector is rising to meet the challenges of a volatile global environment, focused on diversification, liquidity and digital transformation.
“The shift to more than 50% international allocation reflects a commitment to diversification and delivering the best risk-adjusted returns for members,” said Cathryn Carver, an NAB group executive for corporate and institutional banking, in a statement. “Funds are responding to market volatility and regulatory change by strengthening their liquidity management and embracing new technologies. This positions the sector to continue supporting Australians’ retirement outcomes and the broader economy.”
International investment allocations rose to 50.9% in 2025 from 47.8% in 2023.
In addition, artificial intelligence and digitization are a key thematic influencing investment strategy, according to the report. Most super funds prefer to remain ‘on benchmark’ in the U.S. tech sector, despite valuation concerns, NAB found.
Super funds are also placing greater emphasis on liquidity, with ongoing evolution in several facets of foreign exchange hedging strategies, including a trend toward longer hedge tenors, it found.
There is a preference for unlisted assets, especially international unlisted infrastructure, according to the report, which also stated that super funds are seeking to build portfolio resilience with these investments.
Additionally, funds are targeting higher overall foreign exchange exposures than in 2023, while hedging the same proportion of their international equity exposures back into Australian dollars.A version of this article originally appeared in our sister publication, Financial Standard, which, like CIO, is owned by ISS STOXX.
Tags: Asset Allocation, Australian Prudential Regulation Authority, Global Investing, National Australia Bank, Superannuation Funds