State Super is governed by the Superannuation Administration Act 1996 (NSW), which set out the functions, duties, powers and obligations for the management of NSW government defined benefit liabilities and additional member contributions. The Superannuation Investment Management Services Order 2016 (the Order) is a NSW ministerial directive for the management of the defined benefit (DB) portfolio to be undertaken by TCorp. Under the Order, the Master Financial Services Agreement 2018 (MFSA) provides additional detail about broader responsible investment related services to be provided by TCorp across the DB portfolio, including:
Policy & reporting:
- “Advise on how to implement the State Super ESG policy where feasible (including providing input and advice on State Super’s ESG and PRI obligations)”; and
- “Engage with State Super on its PRI and internal reporting requirements”.
- “Alerting State Super to emerging issues of which TCorp is aware and which TCorp considers could impact State Super’s reputation”; and
- “Provide guidance and input on climate risk and exposures across the fund consistent with State Super’s ESG policy”.
- “Provide forward looking guidance on contentious proxy voting matters and coordinate votes across Investment Managers as required”;
- “Engage with investment managers on proxy voting and their own ESG policies and activities”; and
- “Provide information to, and receive input from the Client on contentious votes”.
TCorp are required to provide regular reporting on the above to enable effective monitoring of RI related activities across the DB portfolio.