The first socially responsible investment fund developed exclusively for Councils in Australia was launched in October. The Local Government Ethical Fund was introduced by Local Government Financial Services (LGFS) and is supported by Lgov NSW, representing the Local Government Association of NSW and the Shires Association of NSW.
LGFS Chairman, Councillor Peter Reynolds, announced the fund to delegates at the 2002 Annual Conference of the Local Government Association of NSW in Broken Hill.
“For the first time in Australia, there is a fixed interest managed fund available to Councils that offers socially responsible investment by using positive and negative screening to select securities,” Councillor Reynolds said. “This fund lifts the bar in investment standards using a five star rating system to ensure companies meet a minimum of three stars when rated on environment, social and governance. Importantly, the fund is endorsed by the Wilderness Society.”
Later in the Conference delegates passed a motion congratulating LGFS on this fund.
Councillor Peter Woods OAM, then President of the Local Government Association of NSW, welcomed this initiative to provide Councils with a fund that meets stringent ethical guidelines developed in consultation with Local Government.
“The benefit of the fund is that it has been developed by Local Government for Local Government,” he said. “Many Councils are keen to invest in socially responsible companies and the screening policy ensures securities meet the highest standards in environment, social and corporate governance.”
Shires Association of NSW President, Councillor Mike Montgomery, said the ethical fund provided a new alternative for Councils not offered by others in the market.
“All Councils can invest in the fund and be reassured their investment is socially responsible,” he said. “It is a very positive scheme that is clearly needed and wanted by Councils interested in having an active role in their investment.”
LGFS provides financial services for 70 per cent of Councils in New South Wales. Deposits for the fund will be taken from January 2003. Screening services are provided by ‘Corporate Monitor’ SRI five star ratings. Deposits in LGFS are rated ‘A1 – A’ by Standard and Poor’s. An Information Memorandum for the Local Government Ethical Fund is available from Local Government Financial Services on (02) 9299 7555.
