AustralianSuper exclusive, Rio walks away, farmer succession crisis

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Our superannuation system is the envy of the world — just ask the CEO of our biggest pension fund. AustralianSuper's Paul Schroder regularly fields questions from global peers, asking how we amassed the A$4.5 trillion pile of assets that now makes up the world's fourth-largest retirement savings pool. Still, with three million people set to retire in the next decade, he's among the first to admit the industry needs to do better to serve people cutting back on work or leaving the workforce altogether, as super funds face competition pressure from platform providers. We spoke at length with Schroder when he visited our Melbourne bureau yesterday - he talked to Bloomberg Television and then sat down for a wide-ranging podcast. On that increasing rivalry, he discussed how his A$410 billion fund plans to do better by its retiring members to stop them from taking their business - and super balances - elsewhere. And he also gave us an insight into where the savings of AustralianSuper's 3.7 million members will be invested next: look out for more private equity investments in Asia. Another potential target for pension funds? Australia's multi-billion dollar agriculture sector, where bigger and richer farms are running up against a growing succession crisis. Do make sure you read my colleague Ben Westcott's deep dive into families fighting to build a legacy on the land, while tackling the growing headache of passing their lucrative assets to the next generation. Have a great weekend all. - Amy Bainbridge, Pensions Reporter What's happening now Rio Tinto is walking away from talks to acquire Glencore after the two sides failed to agree on valuation, scuttling a potential mega merger that would have created the world's largest mining company. Rio said it does not intend to make an offer for its smaller rival, shortly after Bloomberg News reported that the talks would be abandoned. Now each company faces, alone, the enormous problems they wanted to solve, writes Bloomberg Opinion's Javier Blas. Australia's trade minister is set to travel to Brussels for talks with European Union officials to try and secure a free trade accord, which if signed would be the bloc's fourth major agreement in recent months and bolster its efforts to stave off pressure from the Trump administration. Flags of the European Union (EU) in Brussels, Belgium. Photographer: Simon Wohlfahrt/Bloomberg Treasurer Jim Chalmers faced criticism after his opposition counterpart urged him to apologize to an economist for "misrepresenting" her remarks about the government's role in reviving inflation and, in turn, the first interest-rate hike of 2026. More awkward news for Chalmers: the country's trade surplus with China has sunk to its lowest since 2018. Global markets have started 2026 in chaotic fashion, with wild swings in stocks, a plunging dollar and fresh questions about everything from gold to AI. On this week's podcast, Chris Bourke talks to AustralianSuper CEO Paul Schroder about how the fund is navigating market volatility, exposure to US tech and AI, the case for staying invested through uncertainty, and why our super system still isn't ready for the retirement wave ahead. Several private credit heavyweights are set to join Australia private equity firm BGH Capital's A$1.4 billion loan backing its acquisition of Aspen Pharmacare Holdings's Asia Pacific operations, according to people familiar with the matter. What happened overnight Here's what my colleague, market strategist Mike "Willo" Wilson says happened while we were sleeping… Another burst of heavy selling pummeled US software stocks amid concern over the impact of artificial intelligence on valuations. Bitcoin fell as much as 10% to the lowest since October 2024 on the unwinding of leveraged bets. Weak US jobs data exacerbated the move, weighing the broader indexes. Commodity currencies fell with oil and precious metals. The dollar rose by default, despite Treasury yields dropping across the curve. RBA Governor Michele Bullock's testimony to lawmakers this morning is the highlight either side of the ditch. ASX futures point to a sour start for local equities. US President Donald Trump said he would meet with Sanae Takaichi at the White House on March 19, as the US president looks to cement his relationship with the Japanese prime minister. Trump announced the meeting Thursday in a social media post, in which he also endorsed her coalition in legislative elections scheduled for Sunday. US President Donald Trump, left, and Sanae Takaichi, Japan's prime minister. Photographer: Kiyoshi Ota/Bloomberg Extreme market swings from metals to currencies are fueling a hiring push at hedge funds and banks as they seek traders who can capitalize on surging volatility. Among the prime targets for multi-strategy firms are specialists in so-called volatility arbitrage, a way to profit from the difference between the price swings the market expects and those that actually occur. China is asking state firms to halt talks over new projects in Panama, as part of Beijing's broader retaliation after the Central American country voided CK Hutchison Holdings's contract to operate two ports along its strategic canal, according to people familiar with the matter. What to watch All times Sydney: • 9.30 a.m. — RBA Governor Michele Bullock speaks to Senate committee One more thing... Towering over the flat, brown plains of eastern Australia, the steel feeding shed dominates the landscape. Five stories tall, the structure underscores the scale of the farm it serves—roughly the size of Chicago. "People say to you, 'Oh, you can see it from Mars,'" says Karen Penfold, 54, the matriarch of the family who oversees the operation. Australia has some of the largest farms in the world, and as owners age and look toward retirement, a crisis is looming. How can these massive, valuable properties be handed over to the next generation without breaking apart? The Penfold family on their cattle farm in eastern Australia. Photographer: Adam Ferguson Enjoying Australia Briefing? 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