We are active owners when it comes to managing investments we hold on behalf of our members.
As an active owner, it is our job to manage our investments appropriately and to discharge shareholder rights in the best interests of our members.
Where possible, we seek to positively influence the governance, policies, practices, and management of investments we own on your behalf to ensure they are managed appropriately and to protect and enhance their value over the long-term.
Strategies we use to influence positive change include:
As a large super fund, we hold a significant number of shares and other investments on behalf of our members. It is our responsibility to manage each investment appropriately and to discharge shareholder rights in the best interests of our members.
Where possible, we use these share voting rights to have a direct and positive influence on how our investments manage ESG risks and outcomes.
We use the recommendations of the Australian Council of Superannuation Investors (ACSI) as a guide when voting at shareholder meetings.
By voting in line with ACSI recommendations, our votes are pooled with other linked-minded investors. This gives our votes greater impact and allows us to have more influence over how companies we invest in operate, behave and report ESG activities. MTAA Super is a signatory to the UNPRI in its own right.
Full details about our share voting policies and to see how we have voted in the past, see Share voting.
To help minimise ESG risks and promote long-term value, we actively engage with the companies we invest in to promote positive ESG outcomes.
We do this:
via our fund managers — who engage with companies on our behalf
as a member of the Australian Council of Superannuation Investors (ACSI) and the United Nations Principles for Responsible Investing (UNPRI) — who advocate and engage with company management on behalf of investors
From time to time we will invest in companies with a poorer ESG profile if we feel we can engage with and positively influence the company to improve its ESG performance.
Apart from having a positive impact on the investment’s overall ESG performance, this allows us to benefit from any increase in value the investment might experience because of these improvements.
Class actions allow shareholders to collectively claim for losses against a company where a case can be made that the loss resulted from a breach in corporate regulations and poor governance practices.
We engage in class actions:
as a last resort governance mechanism
as a cost-effective way to recover member losses caused by a company’s poor conduct
to improve governance standards in the market
Investments within our listed assets portfolio are managed by external asset managers.
The majority of our external asset managers across listed investment markets are signatories to the United Nations’ Principles for Responsible Investment (UNPRI). As a signatory, they must abide by a set of principles that ensure they consider ESG risks when making investment decisions. MTAA Super is a signatory to the UNPRI in its own right.
When engaging new asset managers, their ability to integrate ESG risks into their investment process is a key criterion to any appointment.
Once appointed, we continue to monitor asset manager activities to ensure ESG risks are being appropriately and continuously monitored and managed throughout our portfolio.
Australian Asset Owner Stewardship Code
MTAA Super is a signatory to the Australian Asset Owners Stewardship Code. We support the principles outlined in the code and the guidance they provide on improving the quality and transparency of company engagement and voting practices of Australian asset owners.