Outsider had a good chuckle when he was sedately walking down George St in Sydney and saw a large advertisement covering the side of one of the city’s brand-new trams, excuse me, light rail.
The ad in question was from First State Super and left no one in any doubt that the big super fund, which boasts more than a few NSW public service members, was investing in the light rail.
“Oh boy” Outsider thought as he wondered if First State Super had anticipated the light rail breaking down on its very first day, significant delays, or the fact that people were walking faster than the light rail was actually moving.
According to the fund, it has a 62.5% stake in the light rail and was one of the most significant direct investments the super fund had made.
First State Super chief executive, Deanne Stewart, said the fund’s primary objective was to deliver the best possible long-term sustainable investment returns and as a responsible owner it could do this while being “a genuine force for good in our community”.
At least, Outsider thought, First State Super’s investing team was likely to be faster moving than the Sydney light rail.
Outsider is not opposed to infrastructure investments and he believes superannuation funds have a role in funding community assets but he was just thinking about which super funds were less than impressed by the return on their investment from the Sydney East-West tunnel?