February 2021 investment update

01 February 2021

LGS has always been committed to a genuine responsible investment strategy. Here we outline some of the investments in your super.

 
Each of our investments meet the United Nations Principles for Responsible Investment, a set of 17 aspirational goals developed by the United Nations to end poverty, protect the planet and ensure all people enjoy peace and prosperity. The goals tackle areas including climate change, economic inequality, innovation and sustainable consumption.

PIMCO social bonds

LGS invests in bonds where the use of proceeds is devoted to social projects. One of the bonds in the portfolio is for the Ford Foundation. This social bond – the first ever issued by a non-profit foundation, supports and strengthens non-profit organisations that advance the fight against inequality.

The investment predominantly meets:

Tap/click - image
Tap/click on each tile for more information.
1
No poverty
Sustainable Goals - image
End poverty in all its forms everywhere.
8
Decent work & economic growth
Sustainable Goals - image
Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all.
10
Reduced inequalities
Sustainable Goals - image
Reduce inequality within and among countries.

LGS Property

Local Government Property Fund (LGPF) outperforms the benchmark over 12 months

Performance to 31 December 2020

LGPF delivered a return of 2.34% over the year, outperforming the benchmark by 4.42%.

 1 Month3 Months1 Year2 Years3 Years5 Years
 LGPF 2.31% 3.16% 2.34% 8.11% 9.75% 14.78%
 Benchmark* 1.63% 2.43% -2.07% 1.98% 4.68% 7.78%
 Excess return 0.68% 0.73% 4.42% 6.13% 5.07% 7.00%

Source: J.P. Morgan Custody Report / * Mercer/IPD Australian Property Pooled Fund Index

Eight million containers recycled across two LGS retail centres

Reverse Vending Machine, 
Bridge Plaza Batemans Bay
The Return and Earn container deposit scheme is the largest litter reduction initiative introduced by the NSW Government. It offers a ten-cent refund to consumers for depositing eligible drink containers at return points. Since its inception in 2017, the scheme has significantly reduced the volume of drink container litter across the state.

In 2019, LGS worked with TOMRA Cleanaway and Woolworths to install reverse vending machine return points at its shopping centres at MarketPlace Leichhardt and Bridge Plaza Batemans Bay. Despite COVID-19 restrictions last year, the local communities have shown an incredible passion for recycling with over eight million containers deposited across the two centres.

Not only has this generated over $800,000 in refunds, vouchers and charity donations, it has boosted foot traffic at the centres and customer spending per visit, which is great for the environment and member outcomes.

Tap/click - image
Tap/click on each tile for more information.
The investment predominantly meets:
United Nations Sustainable Development Goals (UNSDG's) are a set of 17 aspirational goals developed by the United Nations to end poverty, protect the planet and ensure all people enjoy peave and proseperity.
11
Sustainable cities & communities
Sustainable Goals - image
Make cities and human settlements inclusive, safe, resilient and sustainable.

LGS Alternatives

Overall portfolio performance (as at 31 December 2020)

 1 Year2 Years3 Years5 Years
Private Equity -0.88% 4.42% 7.29% 10.24%
Opportunistic Alternatives 1.50% 3.78% 3.99% 6.21%
Defensive Alternatives -1.60% 7.12% 7.28% 10.43%

Source: JP Morgan Custody Report

Private equity

ZenitasThe fund invests in Zenitas Healthcare Limited, a provider of mobile health and home care services, including personal and aged care, disability services and accommodation, general practice medicine, physiotherapy, occupational therapy, podiatry, speech pathology and dietetic services.

Tap/click - image
Tap/click on each tile for more information.
The investment predominantly meets:
United Nations Sustainable Development Goals (UNSDG's) are a set of 17 aspirational goals developed by the United Nations to end poverty, protect the planet and ensure all people enjoy peave and proseperity.
3
Good health & well-being
Sustainable Goals - image
Ensure healthy lives and promote well-being for all at all ages.

Opportunistic alternatives

LGS invests with Centaur Property which has funded the construction of more than 1,100 apartments and 4,150 houses with an end value of $2.3 billion. Construction has generated $100 million in infrastructure levies for councils in NSW. It has also assisted in the provision of affordable housing in Sydney and other cities.


Tap/click - image
Tap/click on each tile for more information.
The investment predominantly meets:
United Nations Sustainable Development Goals (UNSDG's) are a set of 17 aspirational goals developed by the United Nations to end poverty, protect the planet and ensure all people enjoy peave and proseperity.
11
Sustainable cities & communities
Sustainable Goals - image
Make cities and human settlements inclusive, safe, resilient and sustainable.

Defensive alternatives

We invest in the Lighthouse Solar Fund which addresses climate change by investing in renewable energy projects such as the Emerald Solar Farm and Clare Solar Farm. Some of the key ESG (environmental, social and governance) metrics of the Lighthouse Solar Fund include the following:

Lighthouse Infrastructure

Tap/click - image
Tap/click on each tile for more information.
7
Affordable & clean energy
Sustainable Goals - image
Ensure access to affordable, reliable, sustainable and modern energy for all.
8
Decent work & economic growth
Sustainable Goals - image
Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all.
13
Climate action
Sustainable Goals - image
Take urgent action to combat climate change and its impacts.

goals

United Nations Sustainable Development Goals (UNSDG’s) are a set of 17 aspirational goals developed by the United Nations to end poverty, protect the planet and ensure all people enjoy peace and prosperity.  The goals tackle areas including climate change, economic inequality, innovation and sustainable consumption.  LGS’ portfolio investments directly meet these goals and contribute to our impact footprint.

The information on this website is of a general nature only and does not take into account your personal objectives, situation or needs. You should consider obtaining professional financial, taxation and or legal advice tailored to your personal circumstances prior to making any financial decision.