Enabling about 500,000 Australians to retire over the next five years is one of the biggest challenges facing Australian super funds, says the head of the industry’s largest IT service provider.
Greenwashing is seen as the biggest challenge for the responsible investment industry with 72 per cent of Australians concerned about it, according to the Responsible Investment Association Australasia (RIAA), and 75 per cent of Australians said they would consider moving to another provider if they found out their current fund was investing in companies engaged in activities inconsistent with their values.
Co-investing enables funds to tap markets where there are fewer players and also gives greater “under-the-hood” access to the value creation of deals, experts say. But with heavy demands on resources and skills, it is not for the faint-hearted.
Cultural change is a long game and much more work needs to be done on building diverse talent pipelines to nurture future inclusive leaders that reflect our society, otherwise calls for quotas will increase, as slow progress will not be tolerated.
The $15 billion NGS Super is prepared to sell off shares in companies which it believes are merely “greenwashing”, as part of its strategy to achieve a target of having a carbon neutral portfolio by 2030, according to chief investment officer Ben Squires.
Qantas Super will allocate $2 billion across two investment managers to target net zero carbon emissions for its portfolios by 2050.
Funds find financial advice the most helpful in determining their members’ needs – the requirement of the Retirement Income Covenant – but not all members want advice.
Large variation in super fund outcomes was identified as a “lottery” effect by the Productivity Commission but despite the controversial Your Future, Your Super performance test, the lottery effect remains sizable and improved measures of accountability are required.
The superannuation industry is ready with billions of dollars in “patient capital” to back the Federal Government’s green energy plans, according to Wayne Swan, chair of the $65 billion construction industry super fund, Cbus.
Funds forced to pay ESG professionals high salaries as demand outstrips supply in the employment market, caused by lack of investment in ESG teams over the past decade.
The role and timing of superannuation funds’ powerful proxy advisers has come under the spotlight with the recent AGL demerger. The $68 billion superannuation fund for the health and community service workers, HESTA, broke ranks early – on May 25 – to publicly oppose the demerger, while other superannuation funds cautiously awaited the advice of … Read more
Super funds bracing for a volatile ride in recent times as investment markets grapple with rising inflation and interest rates, falls in offshore stock markets, lockdowns in China, the war in Ukraine and a spike in oil prices.
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