POWERED BY MOMENTUM MEDIA
HESTA restricts thermal coal investment
HESTA announced it is restricting investments in thermal coal across its portfolio after the fund's Board made the decision.
Under the restriction, the $29 billion fund will not make new investments in unlisted companies or newly listed companies that draw more than 15 per cent of revenue or net asset value from exploration, new or expanded production, or transportation of thermal coal.
The fund will also not provide direct funding via rights issue or share placements to already listed companies which plans to fund future expansion in any of these activities.
"Companies heavily invested in thermal coal face the highest 'unburnable carbon' risk, based on the size of existing proven coal reserves, the higher carbon intensity compared with other fossil fuels, and the increasing viability of substitutes for power generation, including renewable sources," HESTA CEO Anne-Marie Corboy said.
The fund's socially responsible investment option, Eco Pool does not invest in listed companies that get more than 15 per cent of its revenue or net asset value from electricity generation from brown coal or lignite, and the exploration, production or transportation of thermal coal.
It also does not invest in companies with uranium mining operations and tobacco manufacturers.
Recommended for you
A member of the super fund has approached ASIC to investigate potentially misleading or deceptive representations by UniSuper regarding the holdings of its sustainable portfolios.
The median growth fund delivered 1.9 per cent in March, adding to the “stunning” rally that has seen super funds gain 11 per cent since November.
Vanguard has affirmed its support for the current super performance test, emphasising the importance of keeping the process straightforward.
While some superannuation funds have gone down the route of internalisation, others say they favour ‘smart partnering’ with external managers for diversification appeal.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI First Close USD
73.88 3 y p.a(%)
2
Hills International
63.66 3 y p.a(%)
3
Acadian Global Equity Long Short Class A
36.33 3 y p.a(%)
4
CFS FC Acadian Global Equity Long Short
35.96 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
32.23 3 y p.a(%)
Add new comment