How we invest responsibly
Back
Read time: 2 mins

How we invest responsibly

We use our voting power to make a positive difference to the industries we invest in.

What is responsible investment? 

We’re committed to responsible investment. Responsible investment is an approach to managing assets that sees investors, like us, include environmental, social and governance (ESG) factors in their investment decisions.

When we invest in a company, we become a shareholder, which allows the fund to engage with a company in order to seek improvement in their business practices.

You can’t say no if nobody’s listening

It would be easier for us to avoid fossil fuels altogether, but instead we’re there with a seat at the table, engaging with them to try and seek an improvement in their corporate governance and sustainable business practices. We recently lent our support to a shareholder resolution at BHP’s AGM, calling on them to suspend their membership of advocacy groups who obstruct climate change action on behalf of the fossil fuel industry. And when it isn’t possible to change an immovable industry, we’ve simply said ‘no’. ‘No’ to investing in cluster munitions and ‘no’ to big tobacco.

More than anything, we care about the working rights of our members. We recently co-filed a resolution saying ‘no’ to modern slavery in Australia, which affects an estimated 15,000 people in our country. We will continue to speak up for social change, and know that with our influence, people will listen.

Our investment beliefs

Our investment beliefs are the philosophy we follow when we make responsible investment decisions. We have 11 core beliefs that shape the way we manage your retirement savings. 

We review these beliefs from time to time to ensure we harness the best strategies for returns.
 
No. LUCRF Super Trustee investment beliefs
1. High quality governance of the investment process is critical to our success as a fund.
2. We will use our size and long-term investment time horizon to our members’ advantage when choosing investments.
3. We believe real long-term returns, net of fees and tax, are most important. We also recognise that we operate in a competitive marketplace.
4. We believe that markets are relatively efficient over the long-term.
5. We recognise the need to take risk in a considered way to achieve our return objectives.  Risk is multi-faceted and will be taken when we think we will be appropriately rewarded.
6. We aim to achieve our long-term return targets over a range of market environments, and will consider opportunities to reduce downside risk when appropriate.
7. We believe that asset allocation dictates most of the return and volatility of returns, and we will utilise diversified strategic asset allocations to assist in risk management. 
8. We believe that dynamic asset allocation in a medium-term framework can help manage the impact of changes in expected risks and returns of the various asset classes.
9. We believe that environmental (including climate change), social and governance opportunities and risks exist and should be taken into consideration to the extent we can practically do so and within the context of optimising net risk-adjusted returns.
10. We believe that our investment activities can enhance the net risk-adjusted returns to members and support specific social factors that are a priority for our members.
11. We outsource our asset management to appropriately qualified investment managers. Whilst we believe that active managers can add value; net of fees, costs and tax; we will only appoint active managers where we have a high level of conviction in their ability to do so.


 

Our top portfolio holdings as at 31 December 2020

In the following tables, we disclose the top 50 Australian and International equities and top 10 Property and Infrastructure asset class investment holdings. These asset classes have been selected because they make up a significant portion of the investment options offered . This information has been provided to inform members and stakeholders of the largest holdings in our portfolio.

The investment holdings in these assets classes can change on a daily basis.

Australian Equities asset class

Rank Stock Weight (%) 1
1 BHP GROUP LTD 5.26%
2 COMMONWEALTH BANK OF AUSTRALIA 4.83%
3 NATIONAL AUSTRALIA BANK LTD 4.23%
4 WESTPAC BANKING CORP 3.93%
5 CSL LTD 3.56%
6 WESFARMERS LTD 3.27%
7 AUST AND NZ BANKING GROUP 2.96%
8 MACQUARIE GROUP LTD 2.74%
9 GOODMAN GROUP 2.69%
10 ARISTOCRAT LEISURE LTD 2.60%
11 WOODSIDE PETROLEUM LTD 2.41%
12 COLES GROUP LTD 2.09%
13 AMPOL LTD 1.98%
14 JAMES HARDIE INDUSTRIES-CDI 1.91%
15 RIO TINTO LTD 1.61%
16 INSURANCE AUSTRALIA GROUP 1.60%
17 QBE INSURANCE GROUP LTD 1.59%
18 TELSTRA CORP LTD 1.50%
19 TABCORP HOLDINGS LTD 1.29%
20 MINERAL RESOURCES LTD 1.26%
21 BRAMBLES LTD 1.25%
22 ORIGIN ENERGY LTD 1.24%
23 MEDIBANK PRIVATE LTD 1.13%
24 STAR ENTERTAINMENT GRP LTD/T 1.08%
25 WOOLWORTHS GROUP LTD 1.08%
26 QANTAS AIRWAYS LTD 1.06%
27 NEWCREST MINING LTD 1.03%
28 SUNCORP GROUP LTD 1.01%
29 TREASURY WINE ESTATES LTD 0.99%
30 FORESCUE METALS GROUP LTD 0.91%
31 AURIZON HOLDINGS LTD 0.90%
32 SONIC HEALTHCARE LTD 0.85%
33 NINE ENTERTAINMENT CO HOLDING 0.85%
34 CROWN RESORTS LTD 0.84%
35 SOUTH32 LTD 0.83%
36 MIRVAC GROUP 0.76%
37 BLUESCOPE STEEL LTD 0.73%
38 A2 MILK CO LTD 0.72%
39 WAYPOINT REIT LTD 0.64%
40 PREMIER INVESTMENTS LTD 0.61%
41 SMARTGROUP CORP LTD 0.60%
42 LENDLEASE GROUP 0.58%
43 CHARTER HALL GROUP 0.57%
44 HEALIUS LTD 0.57%
45 OZ MINERALS LTD 0.56%
46 AUCKLAND INTL AIRPORT LTD 0.55%
47 SCENTRE GROUP 0.53%
48 BORAL LTD 0.50%
49 REECE LTD 0.49%
50 HARVEY NORMAN HOLDINGS LTD 0.49%

1 Percentage of Australian direct equities 

International Equities asset class

Rank Stock Weight (%) 2
1 TESLA INC 2.15%
2 ALPHABET INC-CL A 1.63%
3 AMAZON.COM INC 1.62%
4 FACEBOOK INC-CLASS A 1.51%
5 UNITEDHEALTH GROUP INC 1.29%
6 MICROSOFT CORP 1.29%
7 ALIBABA GROUP HOLDINGS-SP ADR 1.27%
8 PINDUODUO INC-ADR 1.15%
9 APPLE INC 1.02%
10 TENCENT HOLDINGS LTD 1.01%
11 MEITUAN-CLASS B 1.00%
12 ORACLE CORP 0.95%
13 CHARTER COMMUNICATIONS INC-A 0.93%
14 FISERV INC 0.92%
15 ASML HOLDING NV 0.92%
16 ILLUMINA INC 0.88%
17 JOHNSON & JOHNSON 0.84%
18 INTERPUBLIC GROUP OF COS INC 0.79%
19 NETFLIX INC 0.78%
20 KERING 0.75%
21 UNILEVER PLC 0.74%
22 NUTRIEN LTD 0.72%
23 PELOTON INTERACTIVE INC-A 0.70%
24 DS SMITH PLC 0.68%
25 HEIDELBERGCEMENT AG 0.68%
26 DBS GROUP HOLIDINGS LTD 0.67%
27 SAFRAN SA 0.66%
28 NESTLE SA-REG 0.64%
29 VERIZON COMMUNICATIONS INC 0.63%
30 WEIR GROUP PLC/THE 0.61%
31 BOOZ ALLEN HAMILTON HOLDINGS 0.60%
32 NIO INC - ADR 0.59%
33 ROCHE HOLDING AG-GENUSSCHEIN 0.58%
34 AIRBUS SE 0.58%
35 CANADIAN PACIFIC RAILWAY LTD 0.58%
36 NVIDIA CORP 0.57%
37 SANTEN PHARMACEUTICAL CO LTD 0.56%
38 SHOPIFY INC - CLASS A 0.56%
39 BAE SYSTEMS PLC 0.54%
40 ALPHABET INC-CL C 0.55%
41 BERKSHIRE HATHAWAY INC-CL B 0.54%
42 DEXCOM INC 0.53%
43 MASTERCARD INC - A 0.51%
44 VINCI SA 0.51%
45 ADYEN NV 0.51%
46 JP MORGAN CHASE & CO 0.51%
47 INTERCONTINENTAL EXCHANGE IN 0.50%
48 BAIDU INC - SPON ADR 0.49%
49 CVS HEALTH CORP 0.49%
50 MAKITA CORP 0.49%

2 Percentage of International direct equities 

Infrastructure asset class

Rank Stock Weight (%) 3
1 BUCKEYE PARTNERS, L.P 11.80%
2 INDIANA TOLL ROAD 10.28%
3 ALEATICA 9.53%
4 PATRIOT RAIL & PORTS 7.16%
5 MELBOURNE AIRPORT 6.22%
6 AUSGRID 5.93%
7 MANCHESTER AIRPORT GROUPS 5.74%
8 NSW PORTS 4.47%
FIRST GAS 4.41%
10 DANDENONG 24HR POLICE STATION AND LAW COURT COMPLEX 4.32%

3 Percentage of Unlisted Infrastructure Assets

Property asset class

Rank Stock Weight (%) 4
1 HIGHPOINT SHOPPING CENTRE, MARIBYRNONG, VIC 2.74%
2 161 CASTLEREAGH STREET, LIBERTY PLACE, SYDNEY, NSW 2.10%
3 530 COLLINS STREET, MELBOURNE, VIC 2.01%
4 RIVERSIDE CENTRE, BRISBANE, QLD 1.99%
5 2 SOUTHBANK BOULEVARD, MELBOURNE VIC 1.79%
6 HSBC CENTRE, 580 GEORGE STREET, MELBOURNE VIC 1.70%
7 DARLING PARK 3, SYDNEY, NSW 1.62%
ONE ONE ONE EAGLE STREET, BRISBAN QLD 1.60%
800-808 BOURKE STREET, MELBOURNE VIC 1.57%
10 WESTFIELD CARINDALE, CARINDALE, QLD 1.57%

1 Percentage of Unlisted Property Assets

Proxy voting disclosure

Proxy voting is an effective way for us, as investors to influence company management on ESG issues and other business decisions put to shareholders.

Our proxy voting process is included as part of our  Environmental, Social and Corporate Governance Issues Policy.

Joining forces with other signatories

  • We’ve been a signatory to the Principles for Responsible Investment (PRI) for over ten years. Through the PRI, we’ve joined 230 investors who together represent US$16.2 trillion in assets under management to challenge corporate leadership in reversing alarming deforestation trends. We believe that it’s vital that we take a stance on this issue for our member’s future.
  • We’re one of 515 co-signatories to the Global Investor Statement to Governments on Climate Change, which called on world governments to:
    • achieve the Paris Agreement’s goals
    • accelerate private sector investment into the low carbon transition, and
    • commit to improve climate-related financial reporting.
This statement was initially launched in June 2018 ahead of the G7 Summit. It was showcased with updated lists of signatories at the Global Climate Action Summit in September 2018, at COP24 in Katowice in December 2018, and at the G20 Summit in Osaka in June 2019

Memberships that matter

We’re active members of the

  • Australian Council of Superannuation Investors (ACSI). ACSI seeks to achieve measurable and permanent improvements in the ESG performance of companies we invest in.
  • Investor Group on Climate Change (IGCC), a collaboration of Australian and New Zealand institutional investors with total funds under management of approximately $1 trillion. The IGCC focuses on the impact that climate change has on the financial value of investments. It aims to encourage government policies and investment practices that address the risks and opportunities of climate change.
  • We also have a representative on the IGCC’s Policy and Advocacy Working Group which makes submissions to and meets with the both the Australian and New Zealand governments in an effort to push for action on climate change.

Your browser is out of date

Please update your browser to view this website properly

Update my browser now