The Australian Retirement Trust (ART), valued at $171 billion, charts a distinctive course among its peers, with a keen eye on digital infrastructure and the low carbon economy. Andrew Fisher, Head of Investment Strategy, sees these sectors as pivotal investment opportunities. Despite concerns about the ability of central banks, particularly the US Federal Reserve, to navigate a soft economic landing with lower inflation, Fisher remains optimistic, projecting returns of 8-9% over the long term.
Unlike larger funds like AustralianSuper, ART resists the trend of extensive in-house management, preferring external partnerships for strategic flexibility. Fisher contends that this approach allows for tactical decision-making, providing an advantage in navigating diverse investment landscapes. The fund’s history of lower exposure to infrastructure is attributed to its independence from the industry super investment vehicle, IFM Investors. With about 51% of its assets in equities, ART delivered a noteworthy 10% return in 2023, outperforming expectations, particularly in the face of commercial office block writedowns across the sector.
Despite uncertainties in the global economic outlook, Fisher remains cautiously optimistic about managing inflation and achieving a soft economic landing in the coming year.