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Transparency on societal outcomes essential
Superannuation funds need to show the impact investments have on broader societal outcomes and not only its strategy, according to VicSuper.
The industry super fund said transparency was essential as it was no longer enough to talk about process.
VicSuper chief executive, Michael Dundon, said funds needed to talk about outcomes.
“Community expectations are growing, and Funds must have a clear strategy in place to deliver on these goals and a way of measuring and reporting, so it’s clear to members where their money is invested and the impact those investments have on broader societal outcomes,” he said.
“With the superannuation sector managing close to $3 trillion, it’s essential funds report on where that money is invested, what impact those investments are having on society, and whether that meets our community’s growing expectations of responsible investment.
“As our funds under management grows, so does our responsibility to the broader society, above and beyond providing our members with the best possible retirement outcomes. We can do both.”
VicSuper noted that it had reached its $3 billion in sustainable outcomes one year early which represented 12% of its entire investment portfolio along with aligning member outcomes to eight of the UN Sustainable Development Goals (SDGs).
VicSuper said it measured how member retirement savings support the goals, highlighting the dollar contribution to each SDG across the entire equity portfolio and through assets such as wind, solar, waste-to-energy assets and low carbon equities.
It said climate action, quality education, affordable and clean energy, and good health and wellbeing were some of the SDGs VicSuper had prioritised.
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AustralianSuper has reported a 9.52 per cent return for its Balanced super option for the 2024–25 financial year, as markets delivered another year of strong performance despite the complex investing environment.
The profit-to-member super fund’s MySuper default option has returned 9.85 per cent for the financial year 2024–25.
Colonial First State (CFS) has announced solid double-digit returns for its MySuper balanced and growth equivalent funds during the financial year.
The super fund’s Future Saver High Growth option delivered an 11.9 per cent return for the financial year 2024–25, on the back of a diversified portfolio and actively managed investment strategy.
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