By Iain Withers and Tommy Reggiori Wilkes
LONDON (Reuters) -Britain will hold investment talks with Australia’s biggest pension funds next week, sources told Reuters, as the government tries to draw in overseas cash and learn lessons to help shake up the UK pensions system.
Executives from more than a dozen Australian firms including superannuation funds AustralianSuper and Aware Super and infrastructure investor Macquarie are scheduled to attend meetings with ministers in London and Birmingham, according to a two-day itinerary for attendees seen by Reuters.
The investors collectively manage more than $1 trillion in assets.
British finance minister Rachel Reeves, investment minister Jason Stockwood and pensions minister Torsten Bell are among those hosting meetings, the document showed.
The talks are expected to centre on attracting investment into Britain and sharing insights from Australia’s pension reforms, including consolidation of funds, three industry sources said, declining to be named.
Britain’s finance ministry declined to comment.
The UK government is on a charm offensive with international investors to drum up private funding for UK infrastructure, as it tries to deliver on its core promise of boosting sluggish economic growth.
Ministers hailed investment from U.S. firms to coincide with President Donald Trump’s state visit last month, although not all the commitments were entirely new.
The UK is also pursuing a range of reforms to its pensions system aimed at driving more domestic investment, including mandating smaller schemes to merge to create “megafunds” – a process that has already happened in Australia.
The government cited Australia as an example to try to emulate in its megafunds announcement in May, saying consolidation there had allowed its funds to invest more in infrastructure and private businesses.
Central to the government’s drive to boost growth has been securing a commitment, known as the Mansion House Accord, with top UK investment firms to invest up to 10% of their pension portfolios in infrastructure, property and private equity by 2030. But it wants overseas cash too.
Some Australian funds are already big investors in Britain and on Wednesday Macquarie’s asset management arm announced it was acquiring an additional 50% stake in London City Airport.
Other Australian delegates in town next week include representatives from the Australian Prudential Regulation Authority and investment trade bodies.
Most are travelling from Australia, though some have a substantial UK presence already.
UK firms taking part in meetings include Aviva, Legal & General and Phoenix.
The Australian delegation is also due to attend a UK Regional Investment Summit in Birmingham next week, where ministers will outline investment opportunities for private finance firms.
(Reporting by Iain Withers and Tommy Reggiori Wilkes; editing by Mark Heinrich)
