AustralianSuper, the largest pension fund in Australia with assets totaling £155 billion ($198 billion), is gearing up for a significant investment spree in the UK and Europe. The fund, known for

its investments in Heathrow Airport and the redevelopment of King's Cross, aims to have around 25% of its assets managed from London by 2030, according to CEO Paul Schroder.

To support this expansion, the asset management firm is set to bolster its London workforce by increasing its headcount to approximately 180 within the next three years, up from the current 83 employees. This workforce is projected to grow further to about 300 by 2030.

This initiative comes as a positive development for London's financial landscape, which faced concerns about its global standing following the Brexit referendum. The new hires will cover a range of areas including global equities, infrastructure, private credit, and operational roles.

Schroder expressed confidence in London as a financial hub, stating, "We're encouraged about the quality of talent that's coming forward: it's a sign of confidence in London as a financial city."

With over 3 million members relying on AustralianSuper for their retirement savings, the pension fund has maintained a London office for nearly a decade. Its recent investments in various UK and European assets amount to more than £18 billion, the majority of which is currently managed from London.

The trend of Australian and Canadian pension funds becoming prominent investors in the UK has grown in recent years, as local UK pension funds reduced their holdings. According to the Tony Blair Institute, overseas pensions have invested 16 times more in British venture capital and private equity compared to UK-based funds.

In an effort to counteract this shift, the UK government has taken measures to attract investment. Chancellor Jeremy Hunt recently unveiled reforms in which major insurers committed to investing 5% of managed pension savings in growth assets such as British startups. The government also intends to encourage UK pension funds to allocate more investments to equities over gilts and increase their holdings in infrastructure assets. Photo by Philippe Salgarolo, Wikimedia commons.