AustralianSuper plans to increase private equity allocation from 5% to 8% by year-end.

AustralianSuper, the country’s largest pension fund, plans to finalize four private equity deals by year-end, increasing its allocation to unlisted assets. These new investments are part of a strategy to grow the private equity allocation in its balanced investment option from 5% to 8%. The fund is focused on long-term diversification across asset classes to improve performance.

The pension fund has been building relationships with private markets fund managers, with a team of around 60 people in its New York office. AustralianSuper’s investment chief, Mark Delaney, believes that investing in private equity during periods of low capital raising is an attractive strategy. Despite potential economic slowdown due to US tariffs, the fund maintains exposure to equities and remains optimistic about market performance.

President Donald Trump’s trade agenda and global conflicts have caused volatility in global markets, impacting Australian pensions. Delaney, overseeing over A$365 billion in assets, anticipates a slowdown in the US economy due to tariffs but does not expect a recession. The fund remains committed to its equity exposure despite potential challenges in the market.

Read more at Yahoo Finance: AustralianSuper Boosts Private Equity With Four New Deals Coming