Local Government Super (LGS) has accrued $11 billion funds under management (FUM), just 11 months after it hit $10 billion last April, suggesting a growing appetite amongst Australians for long-term sustainable investment.
LGS chair, Bruce Miller, said that the performance of the fund showed that sustainably investing has clear commercial benefits.
“The strong performance of the fund across various asset classes demonstrates that responsible, sustainable investment makes real commercial sense,” he said.
“The market is quickly catching up to the fact that long-term growth sectors that support positive social or environmental change are the same sectors that will ultimately deliver lasting and reliable returns – a truly win-win scenario.”
LGS held investments in Australian and international shares, property, infrastructure, private equity, fixed interest and absolute return asset classes.
The fund said that over the past year, its in-house property fund, international shares and private equity in particular had positively contributed to its growing FUM.
Super funds had a “tremendous month” in November, according to new data.
Australia faces a decade of deficits, with the sum of deficits over the next four years expected to overshoot forecasts by $21.8 billion.
APRA has raised an alarm about gaps in how superannuation trustees are managing the risks associated with unlisted assets, after releasing the findings of its latest review.
Compared to how funds were allocated to March this year, industry super funds have slightly decreased their allocation to infrastructure in the six months to September – dropping from 11 per cent to 10.6 per cent, according to the latest APRA data.