NGS Super a step closer to 2030 carbon neutral target with investment in Australian Unity’s Green Bond Fund
The CEFC congratulates Australian Unity on securing its first industry superannuation fund investment into the Australian Unity Green Bond Fund. Read more about the CEFC cornerstone investment of up to $70 million in the fund.
Australian Unity media release
31 May 2021
NGS Super has selected the Australian Unity Green Bond Fund as part of its move to a carbon neutral portfolio by 2030, marking the first industry superannuation fund investment into the Fund.
The first of its kind in the Australian market the Australian Unity Green Bond Fund invests in a combination of green, social and sustainable fixed interest securities with the primary purpose of helping to lower carbon emissions. The Fund is managed by Australian Unity’s in-house cash and fixed interest team, Altius Asset Management.
Bill Bovingdon, Chief Investment Officer of Altius said Australia’s $3 trillion superannuation industry is a key contributor to the Australian economy and has a critical role to play in addressing the risks of climate change given its exposure to the financial, physical and transition impacts associated with climate change across the investment landscape.
“The investment from NGS Super is a coming of age for the Australian Unity Green Bond Fund in attracting large-scale institutional investors wanting to give their members access to a fund whose objective is to reduce greenhouse gasses, with a focus on action within Australia” Mr. Bovingdon said.
“The global green bond market continues to grow rapidly, and with this investment NGS Super has given its members access to an investment in high quality bonds and certainty about its positive impact via its use of proceeds and a stable return.”
Ben Squires, Chief Investment Officer for NGS Super, said the investment in the Australian Unity Green Bond Fund was an important milestone for NGS Super in reaching an ambitious target of creating a carbon neutral portfolio by 2030.
“Our target of being carbon neutral by 2030 is the next step in integrating responsible investment for better returns for our members,” Mr Squires said.
“We acknowledge that pursuing a carbon neutral target date of 2030 is ambitious, but this investment is part of a broader implementation plan across the business that will see us play our part in stemming human-induced climate change.”
The Clean Energy Finance Corporation (CEFC) is a cornerstone investor in the AU Green Bond Fund, having committed up to $70 million on behalf of the Australian Government.
CEFC CEO Ian Learmonth said it was pleasing to see the fund’s sustained growth in an already sizeable green bond market. “We welcome the investment by NGS Super into the AU Green Bond Fund. It is another signal of the strong demand by carbon focused investors for investment products that provide market returns as well as support Australia’s transition to a low emissions economy,” Mr Learmonth said.
The Australian Unity Green Bond Fund has more than $150 million in assets under management (as at 30 April 2021) and holds a range of government and credit securities to provide both impact and the potential for regular quarterly income distributions.
In line with increasing demand for its green and sustainable cash investments from individual investors and financial advisers, Australian Unity’s Green Bond Fund and its Sustainable Short-Term Income Fund are now widely available to investors with an investment minimum of $5,000.
About Australian Unity
Established in 1840, Australian Unity is a member-owned wellbeing company with 260,000 members and more than 700,000 customers. Our range of health, wealth and care products and services provides member, customer and community value that is supportive of personal and community wellbeing. www.australianunity.com.au
About the Australian Unity Green Bond Fund
The Australian Unity Green Bond Fund invests in a range of green, sustainable and social bonds from providers that conduct their business and apply capital responsibly, giving consideration to a range of ESG issues with the primary purpose of helping to lower carbon emissions.
About the Australian Unity Sustainable Short-Term Income Fund
The Australian Unity Sustainable Short-Term Income Fund offers daily liquidity and exposure to short-term money market and medium-term floating instruments that may improve returns and diversification. The fund also considers environmental, social and governance issues when selecting investments.
About Altius Asset Management
Australian Unity’s in-house cash and fixed interest team is responsible for more than $2bn in funds under management including responsible investment initiatives in cash and fixed interest.
About NGS Super
NGS Super is a leading superannuation fund for all Australians. It specialises in the non-government education and community sectors, working with around 11,000 employers and managing over $12 billion in super savings. NGS is run only to benefit members and help secure the financial futures of its 120,000 members. www.ngssuper.com.au
Australian Unity Green Bond Fund and The Australian Unity Sustainable Short-Term Income Fund are issued by Australian Unity Funds Management Limited ABN 60 071 497 115 AFS Licence 234454. Information in this media release is general advice only and does not take into account the objectives, financial situation or needs of any particular investor. In deciding whether to acquire, hold or dispose of the product(s) investors should read the relevant offer document and seek professional financial and taxation advice. For more information please visit australianunity.com.au/wealth.
Media release, 2021