MCA blasts ‘ethical’ super funds

Minerals Council of Australia chief executive Brendan Pearson has hit out at superannuation funds that limit fossil fuel investments, according to The Australian Financial Review.

Speaking after AMP Capital announced plans to cut its investments in thermal coal and some types of unconventional oil, Mr Pearson said funds tailored to suit "responsible" investors had become distracted.

"Clearly, the maximisation of re­turns is not a key objective of these investors, if AMP’s existing respons­ible-super-fund products are any indication," he said, according to the AFR.

"Looking at seven-year net returns to 31 December 2013, fund rating agency Chant West ranks AMP’s Responsible Investment Leaders Conservative super fund at 30 out of 49, and AMP’s RIL Balanced super fund at 27 out of 55.

"It is hard to see how making these super fund options less diverse could improve their long-term performance."

AMP’s decision to reduce its investments in fossil fuels follows similar moves by funds including Unisuper and Hunter Hall.