BT elected for governance at VicSuper

BT Financial Group’s Governance Advisory Service (GAS) has struck a deal withVicSuperworth $600 million, bringing GAS’s funds under advice to $4.2 billion.

VicSuper’s chief executive Bob Welsh says appointing BT to identify and improve corporate governance and sustainability practices meant potential financial risks could be addressed before they impacted long-term shareholder value.

“Most investment processes do not systematically monitor sustainability risks,” Welsh says.

Previously, VicSuper’s governance was primarily managed in house by internal investment managers, in consultation with external advisory bodies. The mandate with BT’s GAS will put a finer point on the importance of managing risks, according to Welsh.

“By proactively engaging with companies to minimise environmental, social and corporate governance risks, we have the opportunity to address these issues and safeguard out members investment value,” Welsh says.

BT’s head of GAS, Erik Mather says governance has a tangible effect on shareholder value.

“By actively engaging companies in dialogue to identify and mitigate sustainability risks, BT is driving tangible improvements in corporate behaviour the minimise investment risk, “ Mather says.

VicSuper has 148,000 members and assets under management of approximately $2.3 billion.

The super fund is the latest addition to BT’s GAS book, which also includes thePublic SectorandCommonwealth Superannuation Schemes, as well as theCatholic Superannuation Fund.