Spirit Super

Investment Strategy

Spirit Super is an Australian industry superannuation fund managing approximately $30 billion in retirement savings for over 325,000 members. The fund was formed in 2021 through the merger of Tasplan, Tasmania’s largest superannuation fund, and MTAA Super, which served workers in the motor trades and allied industries nationally. The merger created a larger, more diversified fund with enhanced investment capabilities and scale.

Spirit Super has a strong presence in Tasmania, where it remains the dominant industry super fund, while also serving members nationally across energy, local government, motor trades, and other sectors. The fund is headquartered in Hobart with offices in other Australian cities.

The fund’s default Balanced investment option employs a diversified multi-asset strategy spanning Australian and international equities, fixed income, infrastructure, private equity, real estate, private credit, and alternatives. Spirit Super’s investment strategy is designed to deliver strong long-term returns while managing risk at levels appropriate for a diversified default option.

Spirit Super has been investing in building its internal investment capabilities following the merger. The fund’s investment team manages asset allocation, manager selection, and portfolio strategy, with external managers used across both public and private market asset classes.

The fund integrates ESG considerations into its investment process and has been developing its approach to climate-related investment risks and opportunities. Spirit Super is a signatory to the UN Principles for Responsible Investment and participates in collaborative engagement initiatives with other institutional investors.

Private Markets Approach

Spirit Super’s private markets program spans infrastructure, private equity, real estate, and private credit. These allocations represent approximately 18% of the Balanced option.

Infrastructure is an important allocation for Spirit Super. The fund invests in infrastructure through pooled vehicles, fund commitments, and co-investments. IFM Investors, the industry-super-owned infrastructure specialist, is a significant channel for Spirit Super’s infrastructure exposure. The fund has exposure to Australian and global infrastructure assets including airports, toll roads, ports, utilities, and renewable energy.

In private equity, Spirit Super commits capital to external buyout and growth equity funds, as well as accessing private equity through pooled vehicles and fund-of-funds structures. The fund has been building its portfolio of GP relationships and expanding its private equity allocation as the fund’s scale has grown following the merger. Spirit Super evaluates managers on track record, strategy differentiation, and fee terms.

Real estate investments include Australian property exposure through direct holdings, external managers, and pooled property vehicles. The fund’s real estate portfolio provides income generation and diversification, with exposure to commercial, industrial, and residential property.

Private credit has been a developing area of the portfolio. Spirit Super invests in direct lending and other private credit strategies through commitments to external managers. These investments provide yield enhancement relative to public fixed income.

Spirit Super’s approach to private markets reflects the fund’s position as a growing mid-tier Australian super fund. The fund leverages industry super fund platforms, including IFM Investors, to access infrastructure and private markets at scale. As the fund’s assets continue to grow, Spirit Super is positioned to expand its private markets program and potentially develop additional internal capabilities for co-investment and direct investment activities.