Australian super funds boost infrastructure and property stakes

New research from IFM Investors shows that Australian institutional investors are boosting holdings in infrastructure and non-listed property as a hedge against inflation and market turbulence. The 2026 Private Markets 700 study indicates that 75% of Australian investors and advisors intend to expand their infrastructure-equity stakes within the next three to five years, versus 63% worldwide.

These conclusions stem from a questionnaire completed by 700 senior investment experts on behalf of IFM Investors and FT Longitude in May-June. The sample comprised 267 individuals representing pension and superannuation schemes, as well as insurers, wealth-management firms and advisory consultancies. Additionally, 60% of the Australian participants said they would increase their allocation to non-listed real estate, surpassing the 48% figure observed globally.

The study highlighted that the entrenched Australian superannuation sector, with decades of investment in infrastructure and property, could be a factor behind the nation’s heightened demand for real assets. Around the world, pension and superannuation funds also displayed a tilt toward infrastructure debt, with 63% intending to raise those holdings over the coming three to five years, against 55% of the total survey pool.

The Australian cohort seemed more at ease with cross-border placements, as 59% reported using globally diversified structures, versus 37% worldwide. Nonetheless, their intended allocations differed markedly among private-market categories. The analysis revealed that roughly one-third of Australian investors anticipate trimming private-debt positions in the next three to five years, compared with 21% of respondents internationally.

Access to cash continued to be a key factor, as 68% of Australian participants indicated that improved liquidity and looser redemption provisions would spur additional private-market commitments, against 39% worldwide. Wider worries about inflation and economic uncertainty are influencing these allocation choices, with merely 21% convinced their portfolios can reliably deliver across diverse economic scenarios.

Accessing structural themes safely

Globally, infrastructure equity took the lead as the favored private-market asset class, edging out private equity by a small margin. Approximately 63% intended to boost infrastructure-equity stakes, while 62% aimed to raise private-equity holdings. Deepa Bharadwaj, IFM Investors’ head of infrastructure for Europe, remarked that the inherent traits of infrastructure help clarify its attraction to institutional capital.

“Infrastructure assets provide essential services that need to be available 24/7, and typically have strong demand through cycles,” Bharadwaj said. “Combined with limited competition, these characteristics are a foundation for inflation hedging and resilience.” Nevertheless, competition for assets linked to artificial intelligence and other enduring themes is generating valuation worries, as 62% of those surveyed indicated that capital flows into these sectors are compressing prospective returns.