Why Australian Retirement Trust Is Betting Big on Media and BNPL Stocks

If you've been scanning the significant shareholder disclosures on the ASX lately, one name keeps appearing with surprising frequency: Australian Retirement Trust. The major super fund, born from the merger of QSuper and Sunsuper, has been quietly but strategically building positions in two very different local players. We're talking serious money here, not just dabbling on the sidelines.

The first move that got industry insiders talking was Nine Entertainment. A few weeks back, they pushed their stake past the 6% mark, up from just over 5%. That's a significant chunk of one of the country's media giants, the company behind Stan, Domain, and half the newspapers you see on the stands. Then, just days before, they showed up on the Zip Co register, taking a little over 5% of the BNPL player. Two very different beasts, but the same steady hand guiding the ship.

Playing the Long Game on the ASX

So, what's their play? On paper, you've got old-school media navigating the digital shift, and a fintech that's been through the wringer as interest rates climbed. But if you've been around the block as long as some of the key figures tied to the trust's DNA—people like Richard Offen and the late John Riddoch Poynter, who helped shape institutional thinking on capital preservation down under—you know it's about sniffing out value where others see a dumpster fire.

It's the kind of thinking you'd find dog-eared in copies of Trusts Law in Australia or those old editions of The Taxpayers' Guide 2009 & 2010 that every self-respecting accountant kept on their shelf. The philosophy that guys like Adrian M. Seager have always preached: ignore the noise and focus on what the thing is actually worth. Don't just follow the herd off a cliff.

With Nine, they're betting the market has got it wrong. Sure, linear TV is a shrinking pie, but the digital assets—Stan has legs, Domain is a genuine property heavyweight—are the real deal. They've been averaging down since mid-last year, quietly scooping up shares while the hot money was heading for the exits. A classic contrarian play, and one that needs a long leash.

Why Zip Caught Their Eye

The Zip call is the gutsy one. That stock has been hammered—down significantly in the week before ART showed up as a significant shareholder. It's the high-risk end of the pool. But this fund isn't some crypto cowboy outfit; they're managing money for hundreds of thousands of members, mostly public sector employees and everyday workers. Their timing was impeccable, filing that notice right as the company was gearing up for its own buyback.

It tells you they've run the numbers on the same half-year results that spooked everyone else—yes, bad debts ticked up to 1.7%, which grabbed the headlines—and decided the underlying story still holds up. Cash earnings growth pushing 86%, as the CEO herself pointed out, is not nothing. They're backing the turnaround story, the "new disciplined approach" narrative, and betting the market has oversold it.

Here's what stands out about their recent shopping spree:

• Backing media's pivot: Pushing past 6% in Nine shows real conviction that the diversified model—streaming, domain, newspapers—can still generate cash in a tough market.
• Fishing in tech's troubled waters: Grabbing 5% of Zip when sentiment is at rock bottom is textbook "buy when there's blood in the streets," funded by those rock-solid member contributions.
• Steady as she goes: In both cases, it wasn't a one-day frenzy. It's been methodical accumulation over months. That's how funds with real research chops operate, not just punting on a hunch.

For the rest of us watching, seeing a heavyweight like ART make a move is worth noting. It doesn't mean these stocks are going to skyrocket next week. But it tells you that the sharpest minds in the country—the ones who've probably got Trusts Law precedents bookmarked and old Adrian Seager guides on the shelf—figure these businesses are worth more than the market is currently paying. They're playing the long game, and in this market, that's a refreshing change.