Our Eco Pool investment option has been rated the top performing superannuation investment option over five years
As well as doing good things for people and the planet, Rainmaker Information has rated our Eco Pool option the best performing environmental, social and governance (ESG) option over five years, with average returns at 10.3 per cent.
The report, which publishes the superannuation information portal SelectingSuper.com.au, also showed that Australian interest in socially and environmentally responsible super products is high and growing.
Australian investors currently have $30 billion dollars invested in specifically created ESG offerings through their super. This makes Australia the fourth most active country in the world for ESG awareness.
"With the growing popularity of socially responsible superannuation investment (SRI) options, it’s important to consider not only what these options exclude, but also if they’re investing in high-quality assets that will drive strong, long-term performance,” HESTA CEO Debby Blakey says.
“You don’t achieve this kind of outstanding track record of performance in your SRI option without also having a strong, long-term commitment to responsible investment that’s implemented across the broader portfolio and that’s integrated into all your investment decision making.”
We were first – and that’s kept us on the front foot
“Eco Pool was the first socially responsible superannuation investment option launched in Australia,” Debby points out.
Launched in 2000 — at the dawn of the responsible investment movement — Eco Pool has had nearly two decades to grow up strong. That time has allowed the HESTA internal investment team to build long-term relationships with specialist external managers who can deliver on Eco Pool’s strategy: to find investments that are ‘best in class’.
“We’ve developed a portfolio of investments that are among the best performers in their respective asset classes, sectors or industry both financially and across a range environmental, social and governance factors,” Debby confirms.
Clean is in – tobacco and coal can butt out
A lot of socially responsible investment options highlight what they don’t invest in. And we’re certainly proud of excluding fossil fuel, tobacco and uranium from Eco Pool’s investments.
But it’s important to ‘look under the bonnet’ and check if what they do invest in can deliver strong long-term performance for your super.
In a nutshell: aiming to ‘do good’ for the planet should also mean doing well for you.
“While Eco Pool has more extensive restrictions than other HESTA investment options, it’s also got exposure to high green-rated core property and innovative clean tech private equity,” Debby says.
This combined focus on responsibility and high performance is the key to Eco Pool’s success.
Using our powers for good, today and tomorrow
Our scale means we have the buying power to design investments within Eco Pool for both positive impact and potential return.
“[We empower our managers to] address both our responsible investment requirements and customise a sophisticated fossil fuel restriction,” Debby explains.
“We love to invest with high-performing managers who are skilled at putting a long-term sustainability lens over their decision making.”
Source: Rainmaker Information, 2019.