Active Super had exposures to gambling companies Skycity Entertainment and The Lottery Corporation,Russian-based Gazprom PJSC and Rosneft Oil Company,as well as oil tar sands through ConocoPhillips,and coal miners Whitehaven Coal and New Hope Corporation.
Australian Securities and Investments Commission (ASIC) deputy chair Sarah Court welcomed the judgment,saying it would send a powerful message to corporate Australia and the public.
“What we’re seeing as a result of the work of ASIC and other regulators is that funds are really turning their minds to the representation and statements they’re making,” said Court.
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“Our view on this is very simple:if you choose to make statements or representations that are designed to attract consumers and investors to your firm or fund,you have to be able to substantiate them,and they have to be true,and you can’t rely on disclaimers or qualifiers.”
Justice David O’Callaghan dismissed Active Super’s defence its statements promoting its ethical investments were not of a promotional nature,saying the claims were directed towards encouraging existing members to remain and new members to join.
Following the judgment,an Active Super spokeswoman said they were considering the judgment and the fund’s next steps.