In breaking news today, ASIC Chairman Greg Medcraft has had an amazing insight: investors actually want to know where their money is invested!!! See: http://www.afr.com/p/national/super_secrets_unmasked_wZwYJwpcpVui15DWhY4BtJ
Let’s not be concerned that Mr Medcraft is claiming an idea that Responsible Investment Advisers (such as ourselves) have been raising for decades. The fact is that this is a necessary step and an essential part of our nation’s superannuation system. No longer will funds be able to invest in the most unethical companies of the world under the guise of ‘Balanced’ or ‘Growth’…they will have to explain to their investors why they choose to invest in those companies.
For example, what are the legal and regulatory risks of investing in tobacco, gambling or alcohol? What’s the time frame for investing in (and profiting from) old growth forestry or carbon intensive industries? There will be a deluge of questions from investors for some super funds (you know who you are!).
Hopefully this move will make our ‘Super Ethical Health Check’ redundant. However until then, we’ll be doing our best to inform investors where their funds are really invested!
