Super fund backs ethics
The $3.5 billion New South Wales Local Government Superannuation Scheme has dumped its shares in tobacco companies as an ethical screen for its investment process.
The $3.5 billion New South Wales Local Government Superannuation Scheme has dumped its shares in tobacco companies as an ethical screen for its investment process.
The fund has sold all its tobacco-related shares and has urged other funds to do the same.
Scheme chairman Peter Woods says he did not expect dumping the tobacco related companies would hurt the performance of the fund.
"We think it's about time that there was some ethical considerations given and we don't believe that will have a deleterious effect upon the fund because we think there are good alternatives."
The fund's decision follows several other shareholder campaigns against major companies.
Woods said the fund board was not opposed to dumping other shares it considered were not in the interests of fund members.
"We're interesting in considering ethical matters but at the same time we have to take fiduciary responsibility with our fund to ensure it benefits our members," he said.
The scheme covers 70,000 local government workers, with some $3.5 billion in the fund.
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