Biggest super funds hold billions in gambling stocks
Australia’s top 20 superannuation funds hold $14.8 billion in gambling-related company shares; Gambling reform campaigners say it would horrify people if they became aware of it.
Funds show little concern for the harm gambling inflicts on society, according to a report released Thursday by the Gambling Reform Alliance.
Australian Super, the country’s largest fund, has twice as much exposure to gambling stocks as others, with $4.9 billion in assets.
The four funds with the largest gambling-related holdings are Australian Superannuation Trust ($1.77bn), Colonial First State ($1.46bn), UniSuper ($1.11bn) and Aware Super ($0.94bn).
Pokies giant Aristocrat Leisure is just one of the companies into which pension funds are flowing.
Although many funds have responsible investment policies, approaches to gambling-related risks remain “limited, inconsistent and largely inadequate”, according to Martin Thomas, chief executive of the Gambling Reform Alliance.
He believes many Australians will be shocked to learn how much of their money is invested in the industry.
“There is beginning to be a realization of how socially damaging gambling is,” he told AAP.
“We see bankruptcies, mental health issues, marriage breakups.”
It said harms from gambling were not consistently treated in the same way as harms from other sectors such as tobacco and alcohol, with the latter routinely excluded from retirement investments.
This is despite Australians losing more money per capita than any other country (about $32 billion a year).
A spokesman for Australian Super said the fund did not impose investment screens on gambling companies, except for the Social Awareness option.
‘We invest to help our members achieve the best financial position in retirement,’ they said.
“‘We are engaging with a number of ASX-listed companies, either directly or with other investors, to better understand their initiatives to deliver responsible gaming practices and appropriate governance practices.’
Mr Thomas said gambling was a “blind spot” for pension companies.
He said super funds could make more ethical choices about where to put their money, noting that gambling investment is a relatively small part of overall investments and can run into hundreds of billions of dollars.
“There are so many opportunities out there for them to do the right thing,” he said.
Mr Thomas urged those concerned to contact their super fund to find out how much they have invested in gambling.
“We’re not looking to ban gambling; we just think it’s a harmful, legal, adult product and should be regulated,” he said.
“But we think the investment community, particularly super funds, should stay away from this because we are all made to contribute to these super funds.”
