Australian Retirement Trust (ART) expects Southeast Asia to become an increasingly important destination for institutional investors seeking to diversify away from the US market.
ART, Australia’s second largest superannuation funds, is among the institutions looking to expand beyond the US as global portfolios become more concentrated in US assets.
The super fund has over 2.4 million members across all sectors and industries, and has around A$367.8 billion (US$240 billion) of funds under administration.
“The US has simply been very successful, but one of the most important things about investing is diversification. One of the great challenges we have today is that we have become heavily exposed to the US,” Mark Burgess, chair of ART’s investment committee, said in a presentation at Asia Asset Management’s Vietnam Roundtable 2026 in Hanoi on June 18.
Although ART remains positive on US investments, he said long-term investors are looking for opportunities elsewhere as geopolitical uncertainty, climate change and a more volatile investment environment make diversification and investment skills more important than in the past.He listed infrastructure, digital infrastructure and manufacturing among the sectors drawing institutional interest.
He said ART looks for countries with stable policies, sound macroeconomic management, developed capital markets and regulatory consistency before it commits long-term capital.
According to Burgess, Southeast Asia stands out because the region has favourable demographics, is a destination for global firms seeking to relocate factories, and offers expanding investment opportunities in digital infrastructure, artificial intelligence and energy transition.
ART already has investments across the region, including about A$196 million in Thailand, A$84 million in Malaysia, A$71 million in Indonesia and A$32 million in the Philippines.
Burgess said the super fund expects its exposure to Southeast Asia to continue growing. He said Australian retirement funds are well placed to provide patient capital through long-term partnerships with governments, businesses and local investors.
