Being a long-term investor means looking at a lot of different factors that may have an effect on markets or individual companies over time – and when you’re investing for members’ retirements, it’s essential to take a long-term view. Climate change is one of the biggest risks we consider, because it will have a massive impact right across the economy.
More generally, ESG factors – environment, social and governance – are known to have an impact on companies’ long-term performance, so it’s important for us to consider how well companies manage these factors to get the best returns we can for you. In 2019 Vision Super’s approach to responsible investment was recognised by a number of leading organisations in the field.
PRI Leaders’ Group
Vision Super was one of just six Australian super funds (out of a total of 206 industry, retail, public sector and corporate super funds) to be included in the 2019 PRI Leaders’ Group. The 2019 PRI Leaders’ Group showcases signatories to the UN’s Principles of Responsible Investment that demonstrate excellence in responsible investment broadly, and in selecting, appointing and monitoring external managers. The Leaders’ Group includes only around 10% of all investor signatories globally. Vision Super is very proud that our responsible investment approach has been recognised, and that we are one of the funds being showcased by the PRI to raise standards of responsible investment among other PRI signatories.
To read more about the PRI Leaders’ Group, please click here.
Vision Super rated A+ across 9/10 categories
Vision Super documents our responsible investment activities each year as part of our PRI reporting.
Our PRI Reporting Framework assessment results for 2019 were outstanding - we scored an A+ across 9 out the 10 reporting categories, including the strategy and governance module. Our only non-A+ was an A score for the listed equity active ownership module – which was still an outstanding result, well above the median score of our peers. In fact, we outperformed the average scores of all PRI signatories across all asset classes!
To view our 2019 assessment report click here.
RIAA Responsible Investment Super Study Leaders Board
The Responsible Investment Association Australasia (RIAA) also recognised Vision Super in 2019, including us on their Responsible Investment Super Study Leaders Board. We were one of the top 14 out of the 57 funds they researched. They found we consistently articulate and demonstrate a comprehensive responsible investment approach across our investment framework.
Importantly for our members, the RIAA found that funds like Vision Super who invest responsibly have higher returns than those that don’t:
Financial performance of MySuper options to 30 June 2019.
RI Super Study 2019 leader board v non-leaders
|1 year average||3 year average||5 year average|
|Non-leader (41 funds)||7.07%||8.62%||7.74%|
|RI Super Study leader board (13 funds)||8.11%||9.81%||8.71%|
|Benchmark average (54 funds)||7.32%||8.90%||7.98%|
You can check out the RIAA’s study here.
SuperRatings Infinity Rating
Vision Super received a SuperRatings' Infinity Rating for environmental and social responsibilities for 2020. This was the 11th time that we have received a SuperRatings' Infinity Rating. The Infinity Rating recognises Vision Super as leading the industry in sustainable behaviour with genuine responsible investment principles, openly communicating with fund members and having sound internal sustainability practices underpinning our responsible investment practices.
ACCR proxy voting report
The Australasian Centre for Corporate Responsibility (ACCR) released a study of the proxy voting records of Australia’s largest super funds in May last year. Of the 50 largest Australian super funds, Vision Super was rated number two in the country, finding we supported 88% of the shareholder proposals on ESG issues that we voted on in 2018. We were also listed as one of only five funds that disclose voting records less than a week after the company meeting. You can read the report here.
Our complete voting record is always available for members at https://www.visionsuper.com.au/investments/active-ownership