Calls for UK pension schemes to invest more in the economy have been renewed following the news that Australian pension fund, Aware Super, is looking to direct a A$10bn (£5.25bn) investment commitment in the UK and Europe.

Announcing the investment at the Global Investment Summit, Aware Super said that it has plans to expand its assets under management, with international expansion into the UK a key strategy aimed at achieving that goal.

The fund, which officially opened its first international office in London this week, has A$17bn (£8.84bn) currently invested in the UK and Europe.

It aims to initially focus its further direct investments from its new UK headquarters in real estate, infrastructure and private equity, with an emphasis on the energy transition sector, affordable housing, innovation, life sciences, technology and the digital infrastructure sector.

Aware Super already entered the UK residential property market earlier this year, with a 22 per cent stake in Get Living, a leading developer and operator of large-scale, build-to-rent neighbourhoods.

It also holds an extensive infrastructure and private equity portfolio in the UK, including investments such as Forth Ports and Miller Insurance Services.

Commenting on the plans, Aware Super chief executive officer Deanne Stewart said: “We are thrilled to announce our commitment to the UK, one of the world’s most important and vibrant capital markets, with the opening of our first international office.

“Aware Super's growth trajectory into the UK market will position us as an active, leading global institutional investor, well positioned to deliver strong risk-adjusted returns and lower fees for our Australian members while also providing exciting opportunities for our employees and communities across the UK.

“The benefits arising from the Australia United Kingdom Free Trade Agreement, UK’s ease of doing business, closely aligned culture, proximity to Europe and Northern America and warm support from the Department of Trade and Business and the City of London were also compelling factors in our decision to invest here.”

News of the investment was also welcomed by Business and Trade Secretary, Kemi Badenoch, who said: “This £5bn from Aware Super is a huge boost for UK infrastructure, property and our thriving science and tech sectors.

“Investors like Aware Super are taking advantage of trade deals like the recent Australia Free Trade Agreement and our work breaking down trade barriers to bring new capital into the country.

“Our Global Investment Summit will be further proof of how the UK is fast becoming the most exciting and innovative place in the world to invest.”

UK pension funds have faced growing pressure to invest more in the UK economy, with the Chancellor's Mansion House reforms in particular expected to "unlock" an additional £75bn in funding for the UK economy.

This was also a key theme in the Chancellor’s recent Autumn Statement, with a number of measures looking to enable UK pension funds to invest into the UK's innovative companies.

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