Super fund quits tobacco companies

First State Super removed from its investment portfolios all companies involved in the manufacture of tobacco products, excluding those firms across its entire investment portfolio.

The trustee board cited strong feedback from the health industry—which represents about 40% of the fund's 770,000 members—concerns for members who work in health (notably at the Peter MacCallum Cancer Centre), and support for government initiatives to minimise tobacco consumption.

According to chief executive Michael Dwyer, the fund’s review and analysis showed the exclusion would not compromise returns and would have an inconsequential financial impact on members’ investment performance.

Health-sector employers and members—about 40% of the fund’s 770,000 members—were a key influence, including employees and clinicians from Melbourne’s Peter MacCallum Cancer Centre.

Cancer clinicians and researchers at the Peter MacCallum Cancer Centre welcomed the move; Dr Bronwyn King praised the fund for 'breaking the mould' and Professor David Ball said the decision should be replicated across the superannuation industry.

The fund excluded all companies involved in the manufacture of tobacco products and described the exclusion of direct tobacco investments as the right thing to do, applying the policy across its investment portfolio.

First State Super said the decision reflects both the strong views expressed by its employers and members and the fund’s support for government initiatives to minimise tobacco consumption.

Yes. Health professionals, including specialists at Peter Mac, have urged all superannuation companies to exclude tobacco-related corporations—particularly from default investment options—and Professor David Ball recommended the move be replicated across the industry.