AUDITOR-GENERAL'S REPORT

In reply to the Hon. M. PARNELL (20 November 2007).

The Hon. P. HOLLOWAY (Minister for Police, Minister for Mineral Resources Development, Minister for Urban Development and Planning): The Treasurer has provided the following information:

There is nothing further to add to the information that has already been provided to the member. However, for the record, I provide that information. Funds SA works with the world’s best investment managers and professional advisers to develop and implement investment strategies designed to maximise the likelihood of achieving the objective set down in the Superannuation Funds Management Corporation of South Australia Act 1995.

Funds SA does not ask its appointed investment managers to screen out companies from the investment universe purely on the grounds of predetermined environmental, social, and governance factors. Rather, managers are required to follow thorough and well developed investment processes that aim to identify companies that will generate the best financial performance resulting in the best investment returns for members of the State Government’s superannuation schemes. In evaluating investment opportunities, managers will consider the many risks inherent in each investment. This may include environmental, social, and governance factors, where relevant.

Accordingly, there is no plan at this stage to add to the investment options currently available to members of the government’s superannuation schemes.