- Category: Uncategorised
- 25 August 2016
Australians are increasingly looking to invest their money in-line with their ethics, and almost half of Australia’s investments are invested responsibly, according to the latest report from the Responsible Investment Association of Australasia (RIAA).
As awareness around ethical investment increases, the superannuation sector is trying to provide Australians with ethical investment options, but often at a much higher cost to members.
Can you have low cost super that’s also invested responsibly?
Vision Super is the fourth largest investor in core responsible assets out of Australia’s major super funds*. As an industry super fund, everything they do is in their member best interests, and that includes keeping fees low.
If you’re a member of Vision Super, your superannuation is invested in $1.5 billion worth of sustainable assets that are important to Australia’s infrastructure and economy.
For example, it's invested in renewable energy – like the Vision Super Wonthaggi Wind Farm (pictured), which is completely owned and operated by the Fund and provides electricity to 7,000 Victorian homes.
Vision Super’s Australian shares index portfolio sits in the IFM Investor's Low Carbon Australian Shares fund, which reduces the Fund’s exposure to Australian companies with a high carbon risk.
As the fifth largest investor in IFM Investors, Vision Super’s members are part-owners of assets like Darwin International and Alice Springs airports which, according to IFM, are currently undergoing one of the largest airside solar projects in the world^.
Beyond investing in the renewables sector at home, Vision Super has sought opportunities to align investments with low carbon goals across their portfolio, and invests in overseas companies that have 70% lower carbon exposure than the rest of the market.
The Fund will continue to increase its proportion of sustainable investments as opportunities arise.
Vision Super CEO Stephen Rowe believes the Fund is a leader in recognising and responding to the threat of climate change.
“We have one of the most comprehensive Environmental and Social Governance (ESG) policies in the sector and have been an early adopter of strategies to invest more in renewable energy,” he said.
Vision Personal’s new Sustainable balanced investment option
In a further development to offer Australians sustainable super, the Fund has introduced the Sustainable balanced option, which has an even greater focus on responsible investment.
With the investment cost at about a quarter of the cost of similar options offered by for-profit retail funds, Vision Super believes option is an industry first.
The new investment option is offered through Vision Personal, and more information is available at love.visionsuper.com.au.
Vision Super plans to disclose full investment details to members in their first Corporate Responsibility Report in October 2016. Until then, the Fund’s ESG initiatives are available on their website.
*The Responsible Investment Association of Australasia Benchmark Report, July 2016, Available via www.responsibleinvestment.org.
According to the report - core responsible investment approaches apply at least one of the following primary strategies: negative, positive or norms-based screening; sustainability themed investing; impact investing, community finance; or corporate engagement (Pg 7).
^NT Airports: Investor Update, IFM Investors, July 2016.
Vision Personal is issued by Vision Super Pty Ltd ABN 50 082 924 561, AFSL 225054. This text does not contain any personal advice, it contains general information only. Before investing in the Vision Super Fund, you should consider whether it is appropriate for you and read the Product Disclosure Statement available at www.visionsuper.com.au.