POWERED BY MOMENTUM MEDIA
Funds shouldn’t be bullied by activists: UniSuper
Superannuation funds should be aware of and listen to activist groups on environmental, social and governance (ESG) issues but should not be bullied by them, head of UniSuper Kevin O'Sullivan said.
Speaking at the 2014 Association of Superannuation Funds of Australia (ASFA) conference last week, O'Sullivan said a super fund's top objective should be to provide members with sustainable investment performance, but opinions will vary on what investments are good for members.
"It's up to the fund's trustee, management, and advisers to consider and decide without acquiescing to extreme pressure and campaigning from non-members or from a vocal minority of members," he said.
When screening investments, O'Sullivan asked how far up the investment supply chain one should go because going too far up means one will end up with a meaningless investment universe.
"Tobacco is a good example. You get rid of tobacco, Amcor packages cigarettes, do you get rid of that? Toll Holdings transports the cigarettes. Do you get rid of them? These are the types of questions that you need to consider," he said.
He also said that while members can influence the product range trustees can offer, they cannot and should not influence the investment process.
"A quantitative approach should be taken and funds should remain commercially pragmatic.
"The funds should only make decisions if it makes sense for them, not just for the community. I'm not saying you shouldn't do things for the community but it has to be good for the members."
Around 32,000 out of 440,000 members of the fund have invested in the sustainable, balance, growth and global environmental opportunities option at UniSuper, totalling $1.7 billion.
Recommended for you
Sally McManus, secretary of the Australian Council of Trade Unions (ACTU), commented on the proposal after former prime ...
Strong performance across domestic equities and infrastructure assets has seen the fund achieve solid returns for the 2024-25 financial year.
AMP has delivered another year of double-digit gains across its flagship superannuation options, with its MySuper members reaping the benefits of a disciplined investment strategy amid lingering geopolitical and market volatility.
MLC Asset Management has posted strong superannuation returns for the 2025 financial year, crediting steady asset allocation and broad diversification for navigating a noisy investment landscape.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
92.15 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
53.24 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
43.15 3 y p.a(%)
4
DomaCom Shoreline North Coogee
36.26 3 y p.a(%)
5
GAM LSA Private Shares AU I
35.87 3 y p.a(%)
