The McKell Institute (based in Australia) has prepared a paper entitled
Investing Superannuation for the Public Good: Creating new markets to benefit members and fund necessary investments by Professor Anthony Asher (Associate Professor at the UNSW Business School) and Esther Rajadurai of the McKell Institute.
The report was sought to look at the increasing role and opportunities that Superannuation Funds can play in the development of infrastructure , including Public Sector Owned and Operated.
Report Conclusion - (extract from report )
" Over the past few decades, there has been a significant shift in attitudes towards investments and superannuation. Ethical investing has become part of the mainstream and increasingly, members of super funds are determined to make sure that their super funds are invested in ethical, social and responsible companies and funds. Trustees have increasingly made more explicit commitments to monitoring the risks posed by ESG issues and making positive impacts in their choice of investments. These fulfill their fiduciary obligations to seek the best financial interests of their beneficiaries and are by no means restricted by the Sole Purpose Test.
Infrastructure is already beginning to take its place as a separate asset class, and trustees can use their significant assets more intentionally, in assisting governments fund public infrastructure.
This report suggests that Indexed Annuity Bonds can be adapted to provide lower risk inflation linkages for borrowers and longevity protection for investors. As such, they would be ideal investments for superannuation funds and borrowing vehicles for local and state governments to fund public assets without controversial privatisation.
The call is for trustees and governments to collaborate to develop a market in these instruments that benefits superannuation members and encourages the development of appropriate infrastructure.
Global capital is a dominant force in the world today and the capital invested and held by super funds can be used for the good of the nation. Through proper stewardship of the assets and government collaboration, super funds can be managed to create sustainable and long term value for their members and the broader community "
The report was prepared due to sponsorship from UNIONS NSW, and is a project pursed by The Unions NSW Superannuation Committee , which includes Australian PSI Affiliates based in the State of New South Wales (NSW)
