Strong returns for HESTAs Eco Pool

The national industry superannuation fund for the health and community services sector, HESTA, has proven that being responsible for the environment is also good money management.

HESTA's Eco Pool investment plan returned an annualised 16.3% to members accounts for the five months to June 30 2000, outperforming most corporate and pooled superannuation funds during the same period.

HESTA chief executive officer, Anne-Marie Darke, recently told a group of business people in Newscastle this was the first time in Australia that a mainstream fund has offered an environmental investment choice and provided evidence that it is a financially viable choice for many fund members.

"Eco Pool offers a mainstream alternative through which members can exercise environmental responsibility without putting their retirement investment at risk," Ms Darke said. "It gives people the chance to use their superannuation as a tool to bring about environmental changes in big business."

The Fund has more than 400,000 members working in health and community services for more than 14,000 employers. Eco Pool was established largely as a result of members - 87% of them women - expressing interest in where their superannuation savings were being invested.

HESTA is one of the fastest growing super funds in Australia, with current asset growth of 24% a year. It manages assets in excess of $2.3 billion. It is an industry superannuation fund initially established for employees in the health and community services sectors but now available to any one entitled to superannuation. It has a Board of equally represented employers and employees with all profits going to members, and no shareholders.

"This is the largest offering of an environmental superannuation portfolio in Australian history and it's a big change for the look of superannuation in Australia," Ms Darke said.

More than 70% of the money invested in HESTA Eco Pool is directed to the best 'eco-performing' companies listed within the top 160 on the Australian Stock Exchange. The remaining 30% of the portfolio's funds is invested in cash so as to manage exposure to the risks of share market investment, and help fulfil the Fund's first commitment to protect and enhance members' retirement savings.

"We invest members' superannuation in some of Australia's top listed companies," Ms Darke said. "In this way we put money into companies that are financially successful, but have also adopted environmentally friendly practices and are striving to improve their environmental record.

"Investments like Eco Pool - referred to as screened investments' - will become increasingly important in Australia. They are already big business overseas.

"In the U.A. people realise they can use their superannuation to have a positive impact. Socially responsible investments there are calculated to be worth $1.5 trillion - more than $2 trillion Australian ($2000 billion).

"Research revealed that over a 12 year period, environmentally responsible companies equalled or out-performed the All Ordinaries index, which demonstrated that good environmental practice can mean good business."