11.11.2025
The international share of superannuation assets has surpassed 50% for the first time.
AI and digitisation is the leading thematic influencing investment decisions.
Trump 2.0-related market volatility has not produced any meaningful shift in FX hedging of international assets. Many funds are taking on more, not less, currency risk than in 2023.
Liquidity considerations see increased sophistication in approaches to currency risk management.
NAB’s latest Super Insights Report finds that the $3 trillion APRA-regulated Australian superannuation industry now has more than 50% of its assets invested overseas.
The 12th biennial NAB Super Insights Report draws on survey responses from 37 Australian superannuation funds, representing more than 80% of the industry’s assets under management (AUM).
The findings highlight a sector rapidly evolving to meet the challenges of a volatile global environment, with a strong focus on diversification, liquidity, and digital transformation.
NAB Group Executive, Corporate & Institutional Banking, Cathryn Carver, said the report demonstrates the sector’s resilience and forward-thinking approach.
“The shift to more than 50% international allocation reflects a commitment to diversification and delivering the best risk-adjusted returns for members,” Ms Carver said.
“Funds are responding to market volatility and regulatory change by strengthening their liquidity management and embracing new technologies.
“This positions the sector to continue supporting Australians’ retirement outcomes and the broader economy.”
Key findings from the report include:
Global diversification: For the first time, international investment allocation has surpassed 50%, rising from 47.8% in 2023 to 50.9% in 2025.
- Digital innovation: Artificial intelligence (AI) and digitisation are front and centre as a key thematic influencing investment strategy. Most funds prefer to remain ‘on benchmark’ in the US tech sector despite valuation concerns.
- Liquidity management: Funds are placing greater emphasis on liquidity, with ongoing evolution in several facets of FX hedging strategies, including a trend toward longer hedge tenors.
- Preference for unlisted assets: Especially international unlisted infrastructure, as funds seek to build portfolio resilience.
- Higher FX exposures: Funds are targeting higher overall foreign exchange exposures than in 2023 while hedging the same proportion of their international equity exposures back into the A$.
Notes:
- The NAB Super Insights Report is based on survey responses from 37 Australian superannuation funds, representing over $2.69 trillion in AUM, conducted between late May and early September.
- View a Summary of the NAB Super Insights Report (PDF, 627KB), opens in new window.