Phil Stockwell

Local Government Super (LGS) has announced it has rebranded as Active Super, while also reducing member administration fees and removing the switching fee, effective 1 July 2021.

Active Super Chief Executive Officer Phil Stockwell said the name change was part of a broader strategy to place the award-winning industry super fund in a stronger position to engage existing members and attract new members to drive future growth.

“This decision will increase our appeal to a broader range of members looking to have their superannuation invested in a responsible way, as well as delivering great returns so members can maximise their retirement outcome,” Mr. Stockwell said.

“Our ambition is to grow our membership by delivering great value to our members and this rebrand is key to that growth. We have a loyal membership base within local government and beyond, and we will continue to deliver great service for them.

“Active Super was chosen as the name as it captures our long-standing active pursuit of investments that deliver solid long-term returns for members that have a positive impact on the world, as well as our active involvement with our members and their local communities.

“This decision is part of the natural progression that we’ve been following since March 2009 when the Fund opened to members outside the local government sector.

“Member benefits and entitlements will not change nor will our commitment to provide quality service to local government employees and industry across NSW,” he said.

The Fund will continue to invest, service members and operate efficiently in order to deliver positive long-term results for its members.

Lower fees

Mr. Stockwell said the Fund cut administration fees for the second consecutive year as it was actively seeking efficiencies and ways to reduce operating costs.

Effective 1 July 2021, the administration fees on the Accumulation Scheme, the Account-Based Pension Plan and the Retirement Scheme will be reduced, and the switching fee removed.

“We will continue to provide investment expertise and personalised services that our members have come to know and trust. The strength of our portfolio and our continued pursuit of efficiencies has allowed us to reduce costs and pass these savings directly to our members through a reduction of the administration fees,” Mr. Stockwell said.

Accumulation Scheme members will receive a total administration fee reduction of at least 4 per cent per annum depending on the size of their balance. For example, Accumulation Scheme members with a $50,000 balance will save 5.2 per cent per year on annual administration fees.

Account-Based Pension Scheme and Retirement Scheme members will receive a reduction in the weekly administration fee.

Responsible investing

Mr. Stockwell said the Fund’s position as a leader in responsible investing would remain a cornerstone of its investment philosophy.

“We have been investing responsibly for over a decade and first became a signatory to the UN Principles for Responsible Investment in 2007. We have been a pioneer in responsible investing for many years and began this journey 20 years ago when we became Australia’s first super fund to stop investing in tobacco.

“Responsible investment is in our DNA and we examine the environmental, social and governance (ESG) impact of our investments across our entire portfolio while also incorporating active ownership strategies.”

The new brand identity will allow Active Super to capitalise on the changes and reforms occurring in Australia’s $3 trillion superannuation sector.

“Our aim is to help members maximise their retirement income by earning long-term sustainable investment returns. While we are an industry leader in responsible investment, our number one priority is delivering the best member outcomes possible,” Mr Stockwell said.

“We want to use size to our advantage as we are nimble enough to actively manage our investments to deliver great long-term returns and high levels of service for our members.”

The strategy will also offer members a new digital experience as Active Super has redesigned its website, is upgrading its app with increased functionality, and improving the overall engagement experience.

Member-focused fund

Chair Kyle Loades said Active Super’s investments, service and operations would not be affected by the rebrand and that it would remain a profit-for-member fund.

“This as a tremendous opportunity for employees and members alike to embrace an exciting time in our history and future growth strategy. LGS was established in 1997 and has traditionally been the industry super fund for current and former NSW local government employees,” Mr Loades said.

“It is important that we stay true to our heritage and that we focus on our members, delivering a solid performance and doing so in a responsible way. We acknowledge and embrace our proud history and want to take all members along with us as we embark on this new chapter in our evolution as a great Australian super fund.

“We will remain a focused player where size and scale are used to our advantage, and we will maintain our regional presence servicing local government across NSW.”

Mr. Loades said the rebrand would benefit both current and future members as it would help position the Fund to attract new members and increase its scale.

“We would like to encourage our members to be more active with their super while we focus on continuing to deliver a great performance for them.”

The Trustee will remain as LGSS Pty Ltd and the Fund, Local Government Super, will begin trading as Active Super from 25 May 2021.

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This prestigious award recognises the super fund most committed to addressing its environmental and ethical responsibilities and confirms LGS as Australia’s leading responsible and sustainable super fund.

Commenting on the award, Chief Executive Officer, Phil Stockwell said, “At LGS, responsible investment is not an investment option, it’s integrated into everything we do. This ensures that our members can sleep well at night, knowing their super fund is managing their retirement income in a sustainable and ethical manner without sacrificing long-term returns.”

The aim of LGS’ responsible investment approach is to earn long-term sustainable returns by seeking out investments that have a positive impact on the environment and local communities while minimising the long-term environmental, social and governance (ESG) risks.

Head of Responsible Investment at LGS, Moya Yip, said, “Our approach is to employ a range of strategies to manage ESG risks including positive and negative screens, and as an active owner, we engage directly with companies in our portfolio and with industry organisations to continually improve sustainability performance.”

LGS manages one of the most sustainable direct property portfolios in Australia, having achieved Carbon Neutral certification for all NABERS rated buildings in the portfolio. Over 50% of the property portfolio utilises renewable energy generated onsite from solar panels while all electricity procured by LGS is offset with 100% GreenPower. This ensures the buildings only use independently accredited renewable energy from 100% renewable sources.

LGS has also been certified carbon neutral through Climate Active. The certification includes all LGS employees, the Sydney head office, and the fund’s seven regional offices.

LGS supports a number of carbon offset projects, including a re-forestation project in New South Wales, the Rimba Raya biodiversity reserve project in Indonesia, and a wind power project in Rajasthan, India. These projects reflect our local and global outlook and they generate environmental, social and economic co-benefits.

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Margo Lydon

NSW based Local Government Super (LGS) has announced its partnership with national workplace mental health organisation SuperFriend, effective 1 October.

LGS was first established in 1997 to serve the superannuation and retirement needs of those working in NSW Local Government occupations. However, it is now open to any working Australian and manages approximately $12 billion for its members.

SuperFriend will support LGS’ employers and members in partnership with LGS’ group insurer TAL, with a range of online and facilitated training solutions, consulting, webinars and other resources. The aim of this partnership is to ensure a healthy and safe work environment and to reduce work-related mental health risks for LGS and their employers, and help their members reach a mentally and financially healthy retirement.

Speaking of the partnership, LGS CEO, Phil Stockwell, said “Over the last six months, COVID has highlighted the need for all of us to look after our own mental health as well as the mental health of our family and our colleagues. We can all experience stress, anxiety, or even depression at some point in our lives, but with the right support you can come out the other side stronger and more resilient.

“A good life, a fulfilling career and a productive workplace are all built on good mental health. That’s why we’ve partnered with SuperFriend to provide support, tools and other initiatives for our staff, our members, and their employers” added Mr Stockwell.

SuperFriend CEO, Margo Lydon said, “Our 2019 Indicators of a Thriving Workplace national research revealed that, despite assumptions around security and low stress in government occupations, public administration and safety was one of the top three industries where workers felt their workplace has caused a mental health condition. Our 2020 research will be released on 9 October so expect some insights into how COVID-19 has further impacted this sector.

“It’s really impressive to see LGS committing to improving mental health outcomes for its members at this particular time and we are thrilled to have the opportunity to work with them and their employers.”

TAL Chief Commercial Officer, Group Life & Investments, Andrew Howard, said, “Now, more than ever, it is essential that Australians have access to education and support for mental health. At TAL, we have worked closely with SuperFriend to successfully embed compulsory mental health training for our people leaders and further training to support the mental wellbeing of our employees and customers.  We are delighted to support LGS’ partnership with SuperFriend to improve the mental wellbeing of LGS and its members.”

LGS joins 24 other profit-to-member funds and eight group insurers in partnering with SuperFriend, an organisation created by the sector to reduce the impact and incidence of suicide and improve workplace mental health.

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LGS has met all the requirements of the Climate Active Carbon Neutral Standard (formerly the National Carbon Offset Standard). The fund closely measures emissions, reducing them where possible, offsetting emissions and publicly reporting on the results. The certification includes all LGS employees, the Sydney head office, and the fund’s seven regional offices.

Chief Executive Officer, Phil Stockwell, said, “Sustainability has always been a core value for LGS and becoming carbon neutral underlines our long-standing commitment to reducing emissions and contributing to a low-carbon economy.

It demonstrates to our members and the wider community that it is possible to effectively reduce emissions through targeted action.” Head of Responsible Investment, Moya Yip, said “LGS supports a number of carbon offset projects, including a re-forestation project in New South Wales, the Rimba Raya biodiversity reserve project in Indonesia, and a wind power project in Rajasthan, India. These projects reflect our local and global outlook and they generate environmental, social and economic co-benefits.

“The carbon offset projects align with the United Nations Sustainable Development Goals and the values of our membership base. The projects deliver community benefits in the form of employment opportunities for the local population, especially for women in enterprise. They also raise living standards through clean water and solar energy as well as introducing innovations into local agriculture.”

LGS’ head office is situated at 28 Margaret Street Sydney and is part of LGS’ property portfolio which was the first to be certified carbon neutral by Climate Active for all the NABERS-rated buildings in the portfolio. M

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Mr Stockwell takes up the role from the 26th of November 2019. His appointment follows an extensive executive search.

Commenting on the appointment LGS Chair Kyle Loades said, “Phil’s strategy, leadership and operational experience in financial services organisations in times of change is a good fit for LGS and our members. The LGS Board, in making this pivotal appointment, was focussed on securing a candidate who could lead the fund in key areas. These include maintaining the track record of long-term strong member retirement outcomes and investment returns, remaining at the forefront of sustainable investing, and leading positive change to evolve member service and value.”

“Phil has extensive investment industry experience and a career-long track record of creating and leading effective change programs to deliver better client service and investment outcomes. As such he will work with the Board and LGS leadership to articulate the Fund’s strategy, then lead the business to deliver on our aspirations for members. We are delighted to appoint a CEO of Phil’s calibre and background. He joins an experienced and tenured leadership team and takes over the role from Interim CEO Donna Heffernan.

“I would like to acknowledge Donna Heffernan for her contribution as Interim CEO this year. Donna will revert to her role as Deputy CEO and Company Secretary,” concluded Mr Loades.

Commenting on his appointment, Phil Stockwell said, “I’m delighted to join LGS as CEO. The Fund has a strong platform for growth and evolution, a trusted brand, and history of providing members with strong, consistent and sustainable investment outcomes. This focus on member outcomes and leadership in sustainability are important to me. In a time of great change for all superannuation funds there is increasing focus on improving member investment outcomes, value and service.”

“I look forward to working with the Board, Executive team and all stakeholders to ensure the Fund is well positioned to maximise the value we deliver for members.

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