February 2021 investment update

Active Super has always been committed to a genuine responsible investment strategy. Here we outline some of the investments in your super.

Each of our investments meet the United Nations Principles for Responsible Investment, a set of 17 aspirational goals developed by the United Nations to end poverty, protect the planet and ensure all people enjoy peace and prosperity. The goals tackle areas including climate change, economic inequality, innovation and sustainable consumption.

PIMCO social bonds

We invest in bonds where the use of proceeds is devoted to social projects. One of the bonds in the portfolio is for the Ford Foundation. This social bond – the first ever issued by a non-profit foundation, supports and strengthens non-profit organisations that advance the fight against inequality.

LGS Property

Local Government Property Fund (LGPF) outperforms the benchmark over 12 months

Performance to 31 December 2020

LGPF delivered a return of 2.34% over the year, outperforming the benchmark by 4.42%.

	1 Month	3 Months	1 Year	2 Years	3 Years	5 Years
LGPF	2.31%	3.16%	2.34%	8.11%	9.75%	14.78%
Benchmark*	1.63%	2.43%	-2.07%	1.98%	4.68%	7.78%
Excess return	0.68%	0.73%	4.42%	6.13%	5.07%	7.00%

Source: J.P. Morgan Custody Report / * Mercer/IPD Australian Property Pooled Fund Index

Eight million containers recycled across two Active Super retail centres

The Return and Earn container deposit scheme is the largest litter reduction initiative introduced by the NSW Government. It offers a ten-cent refund to consumers for depositing eligible drink containers at return points. Since its inception in 2017, the scheme has significantly reduced the volume of drink container litter across the state.

In 2019, we worked with TOMRA Cleanaway and Woolworths to install reverse vending machine return points at its shopping centres at MarketPlace Leichhardt and Bridge Plaza Batemans Bay. Despite COVID-19 restrictions last year, the local communities have shown an incredible passion for recycling with over eight million containers deposited across the two centres.

Not only has this generated over $800,000 in refunds, vouchers and charity donations, it has boosted foot traffic at the centres and customer spending per visit, which is great for the environment and member outcomes.

Active Super Alternatives

Overall portfolio performance (as at 31 December 2020)

	1 Year	2 Years	3 Years	5 Years
Private Equity	-0.88%	4.42%	7.29%	10.24%
Opportunistic Alternatives	1.50%	3.78%	3.99%	6.21%
Defensive Alternatives	-1.60%	7.12%	7.28%	10.43%

Source: JP Morgan Custody Report

Private equity

We invest in Zenitas Healthcare Limited, a provider of mobile health and home care services, including personal and aged care, disability services and accommodation, general practice medicine, physiotherapy, occupational therapy, podiatry, speech pathology and dietetic services.

Opportunistic alternatives

We invest with Centaur Property which has funded the construction of more than 1,100 apartments and 4,150 houses with an end value of $2.3 billion. Construction has generated $100 million in infrastructure levies for councils in NSW. It has also assisted in the provision of affordable housing in Sydney and other cities.

Defensive alternatives

We invest in the Lighthouse Solar Fund which addresses climate change by investing in renewable energy projects such as the Emerald Solar Farm and Clare Solar Farm. Some of the key ESG (environmental, social and governance) metrics of the Lighthouse Solar Fund include the following:

Lighthouse Infrastructure