First State Super quits tobacco
First State Super has excluded all investments related to the manufacture of tobacco products from its 12 investment options.
The move extends the current exclusion of tobacco-related investments from the socially responsible investment option.
First State Super chief executive Michael Dwyer said the decision followed "strong feedback from health employees and those working in health service who represent 40 per cent of our total membership".
The fund merged with Health Super in July last year, bringing the membership of the merged entity to 770,000.
"Our decision reflects both the strong views expressed by our employers and members and our support for government initiatives to minimise tobacco consumption," he said.
"We've instructed all of our investment managers … that we don't wish to hold those stocks. We've also asked for regular reporting to ensure the policy is adhered to," Dwyer said.
He added that an "extensive review" of each of the fund's investment options had found that excluding the tobacco investments would not "compromise returns".
First State Super is very conscious of its fiduciary responsibility to its members, Dwyer said.
"Our analysis shows there will be inconsequential financial impact from this decision for members' investment returns. It adds to the decision that the exclusion of direct tobacco investments is unquestionably the right thing to do," he said.
AUTHOR
Staff Writer
Money Management staff writers are writers who contribute to the website from time to time. If you would like to discuss the content contained within this article please contact us.
Recommended for you
Ethical super fund Australian Ethical has announced the appointment of Anthony Lane as chief operating officer.
The structural shift towards active ETFs will reshape the asset management industry, according to McKinsey, and financial advisers will be a key group for managers to focus their distribution.
ASIC has warned that practices across the $200 billion private credit market are inconsistent and, in some cases, require serious improvement.
A surge in electricity prices has driven the monthly Consumer Price Index to its highest level in a year, exceeding forecasts.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
225.31 3 y p.a(%)
2
Loftus Peak Global Disruption Fund Hedged
120.73 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
72.47 3 y p.a(%)
4
Paradice Australian Mid Cap A
69.09 3 y p.a(%)
5
Global X Ultra Long Nasdaq 100 Complex ETF
61.94 3 y p.a(%)
