First State Super Withdraws Investment in Tobacco Companies

First State Super, a superannuation fund, has removed from its portfolios companies that are involved in the manufacture and marketing of tobacco products.

According to chief executive Michael Dwyer, the company arrived at the decision after listening to the feedback from the health industry. About 40 percents of First State Super’s members are from the said industry.

In a statement, Dwyer said the board has been mindful and considerate of what its members believe. And given that many are in the health sector, it is just but right to withdraw tobacco companies from its investment portfolio.

The chief executive added that the organization is committed to its members and employers, and supports the government’s efforts to reduce tobacco consumption.

Dwyer said the organization reviewed its investments strategies and saw that excluding tobacco companies won’t affect returns.

He emphasized that it is the right thing to do.

The move was lauded and welcomed by cancer specialists. Peter MacCallum Cancer Center also praised the move. Specialists, clinicians, and health professionals from the cancer center have encouraged superannuation companies to not include tobacco and related companies in their investment portfolio.

Peter McCallum Cancer Center said it congratulates First State Super for breaking away from the norm. Peter Mac’s Lung Service chairman David Ball said First State’s move should be emulated by others in the superannuation industry.