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.
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.
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