Retirement
Super fund spends $19m on social investment, expects big returns
One of Australia's biggest super funds has invested millions in Australia’s first suburban village for dementia patients, showcasing the investment potential of social impact projects.
Super fund spends $19m on social investment, expects big returns
One of Australia's biggest super funds has invested millions in Australia’s first suburban village for dementia patients, showcasing the investment potential of social impact projects.
HESTA, a member of Industry Super Australia, has invested $19 million in Tasmania’s Korongee village, an urban development for those living with dementia.
The super fund has invested in the village through its Social Impact Investment Trust, which seeks to find investment opportunities to deliver market returns whilst also positively impacting communities.
HESTA CEO Debby Blakely said the investment was reflective on the fund’s focus on seeking out worthwhile investment opportunities that also provide a social impact.
“We focus on making a real difference to the financial future of every member and, in the process, having a positive impact on the world into which they will retire,” Ms Blakey said.
“To deliver this we think and act holistically about how we achieve sustainable investment returns, while contributing to a healthier society and planet.”
The social impacts
She said she hoped the act would inspire other super funds to follow suit and invest in opportunities that reap capital returns and address social issues.
“Even relatively small allocations to impact investing from funds in Australia’s $2.7 trillion superannuation industry can make a huge difference,” Ms Blakey said.
The village, the first of its kind in Australia, will be shaped as a typical Australian cul-de-sac, with 12 eight-bedroom houses, a café, supermarket, beauty salon and gardens.
HESTA CEO Debby Blakely said the village represents the need for innovation in dementia care across Australia, as the disease is currently the second biggest cause of death for Australians and the largest cause of disability for those aged 65 and above.
“The demand for dementia care across the nation is outstripping supply,” Ms Blakely said.
“Korongee will help address the big social challenge of dementia, as well as create jobs and opportunities for our members who work in health and community services.”
The design for Korongee was based on leading international and local examples of care facilities that offer independence and stability to dementia patients who can no longer live at home.
Lucy O’Flaherty, CEO of Glenview, the not-for-profit aged care provider that has partnered with HESTA on the project, said:
“Residents at Korongee will live in small houses with others whose values they share. All the homes are being built with dementia design principals throughout, so a sense of everyday normality is much easier to maintain.”
The development is in partnership with the Commonwealth Government and Social Venture Australia, who manage HESTA's $70 million trust, and will be completed in late 2019.
RELATED ARTICLES
Superannuation
Australia's super performance test transforms investing: What's the next move?
APRA’s latest performance test has done more than name and shame lagging super options; it has rewired investment strategy, compressed fees and accelerated consolidation across the $3Read more
Superannuation
Australia's super test dilemma reform could boost long-term gains while keeping accountability sharp
APRA’s latest performance test results have reignited a structural debate: can Australia hold funds to account while still backing the nation’s long-horizon investment needs? With the government ...Read more
Superannuation
Super funds rethink strategy as APRA's performance test hits a fork in the road
The latest performance test results have reignited debate over Australia’s superannuation benchmarking regime and prompted a formal government review. Behind the headlines, boards are quietly rewiring ...Read more
Superannuation
Aware Super enhances digital tools for financial advisers, boosting efficiency and client engagement
Aware Super has unveiled a suite of new digital features designed to streamline the workflow for financial advisers and their clients. This significant upgrade includes direct data feeds to Xplan and ...Read more
Superannuation
Super funds flip the script as APRA's performance test sparks strategic overhaul
Australia’s performance test has lifted the floor on retirement outcomes—and divided the industry in the process. After early shockwaves, failure rates have fallen and fees have trended down, but ...Read more
Superannuation
Rewiring Australia’s super performance test: from compliance brake to capital engine
Can an accountability tool double as a nation-building lever? Canberra’s review of the superannuation performance test aims to preserve member protection while freeing funds to back long-dated assets ...Read more
Superannuation
Superannuation guarantee rate rises to 12 per cent as parental leave changes take effect
The superannuation guarantee rate has increased from 11.5 per cent to 12 per cent from Tuesday, with super contributions also being added to Commonwealth Parental Leave Pay for the first time. Read more
Superannuation
Rest's Sustainable Growth option achieves highest sustainability classification
Rest superannuation fund has achieved the highest sustainability classification for its Sustainable Growth investment option from the Responsible Investment Association Australasia. Read more
Superannuation
Australia's super performance test transforms investing: What's the next move?
APRA’s latest performance test has done more than name and shame lagging super options; it has rewired investment strategy, compressed fees and accelerated consolidation across the $3Read more
Superannuation
Australia's super test dilemma reform could boost long-term gains while keeping accountability sharp
APRA’s latest performance test results have reignited a structural debate: can Australia hold funds to account while still backing the nation’s long-horizon investment needs? With the government ...Read more
Superannuation
Super funds rethink strategy as APRA's performance test hits a fork in the road
The latest performance test results have reignited debate over Australia’s superannuation benchmarking regime and prompted a formal government review. Behind the headlines, boards are quietly rewiring ...Read more
Superannuation
Aware Super enhances digital tools for financial advisers, boosting efficiency and client engagement
Aware Super has unveiled a suite of new digital features designed to streamline the workflow for financial advisers and their clients. This significant upgrade includes direct data feeds to Xplan and ...Read more
Superannuation
Super funds flip the script as APRA's performance test sparks strategic overhaul
Australia’s performance test has lifted the floor on retirement outcomes—and divided the industry in the process. After early shockwaves, failure rates have fallen and fees have trended down, but ...Read more
Superannuation
Rewiring Australia’s super performance test: from compliance brake to capital engine
Can an accountability tool double as a nation-building lever? Canberra’s review of the superannuation performance test aims to preserve member protection while freeing funds to back long-dated assets ...Read more
Superannuation
Superannuation guarantee rate rises to 12 per cent as parental leave changes take effect
The superannuation guarantee rate has increased from 11.5 per cent to 12 per cent from Tuesday, with super contributions also being added to Commonwealth Parental Leave Pay for the first time. Read more
Superannuation
Rest's Sustainable Growth option achieves highest sustainability classification
Rest superannuation fund has achieved the highest sustainability classification for its Sustainable Growth investment option from the Responsible Investment Association Australasia. Read more
