Update: HESTA divested from Transfield Services!

HESTA divested!

Updated August 2015: HESTA has divested! HESTA Divest sincerely thanks all our allies and supporters that contributed to the campaign by contacting HESTA or their union or employer representative on the HESTA board; sharing information about the campaign amongst health and community sector workers both online and in person; and attending HESTA Divest events such as the HESTA Community Sector Awards in Sydney in June 2015. HESTA Divest strongly believes that our contributions played a critical role in ensuring that HESTA finally divested from mandatory detention.

Below we have collected media reports and other links regarding HESTA’s divestment from Transfield Services.

Next steps

HESTA Divest notes that Cbus Super, VicSuper, Sunsuper, Allan Gray and Invesco Australia all hold shares in Transfield Services. We call on these super funds and fund managers to #DumpTransfield and divest from the detention industry.

As at 2 September 2015, UniSuper is invested in Decmil, a major detention contractor. It has not ruled out buying Transfield shares as part of the "multitude of buy and sell decisions on many stocks every day".

For more information on the UniSuper Divest campaign, see Facebook and the campaign website, unisuperdivest.net.

Please do not hesitate to contact HESTA Divest at info@hestadivest.net

The response

Comment: HESTA Divest notes that The Australian Financial Review (AFR) is attempting to shift the focus on Transfield’s dismal performance—both on Social and Governance factors and financially—to a debate about industry super funds. In addition to the continuing horrifying revelations of the abuse of asylum seekers in Nauru and Manus Island, Transfield’s share price has also plunged. For example, on the date of HESTA’s compulsory disclosure to the ASX that it had gone over the substantial shareholder threshold (more than a 5% stake) in Transfield on 11 December 2014, the company’s share price was $1.71. When HESTA sold its shares on 14 August 2015, Transfield’s share price was $1.125—less than two thirds of HESTA’s purchase price.

HESTA’s shares in Transfield Services represented losses for its members as well as the financing of the detention of asylum seekers. The conversation we need to have is why ANY super fund or company continues to invest in the detention industry through companies like Transfield Services.

Divest from detention—end mandatory detention.

News reports and commentaries

  1. Hesta’s Transfield dumping highlights ethical focus, The Saturday Paper, 12 September 2015.
  2. Don't use my money to dig the graves, Brisbane Times, 7 September 2015.
  3. Investors split on Transfield as debate ranges over Nauru, Manus contracts, Australian Financial Review, 7 September 2015.
  4. Australia's secretive refugee camps run into new hurdle: ethical investors, Reuters, 1 September 2015 and The Japan Times, 2 September 2015.
  5. Transfield named Coalition's 'preferred tenderer' for Manus and Nauru centres, The Guardian, 31 August 2015.
  6. Investing in detention centres - is it for you?, Business Spectator, 28 August 2015.
  7. Fundies sign up for Manus and Nauru inspections, Australian Financial Review, 28 August 2015.
  8. Jury out on Transfield Services as investors weigh up brand damage from detention contracts, Australian Financial Review, 28 August 2015.
  9. Transfield Services to tackle governance risks after net profit falls 8pc, Australian Financial Review and Sydney Morning Herald, 27 August 2015.
  10. Transfield Services aims to send fund managers to Nauru and Manus, Australian Financial Review and Sydney Morning Herald, 27 August 2015.
  11. Transfield profits drop as shareholders sell over asylum abuse on Nauru, Manus, The Guardian, 27 August 2015.
  12. There's more to super fund HESTA's divestment than ethics, The Conversation, 26 August 2015.
  13. NGS Super dumps Transfield Services on 'moral grounds' Australian Financial Review, 25 August 2015.
  14. HESTA decision underlines case for independent super boards Australian Financial Review, 24 August 2015.
  15. View from the Street: So human rights breaches aren't a great investment, then? Sydney Morning Herald, 23 August 2015.
  16. Winners and losers in super wars Australian Financial Review, 23 August 2015.
  17. Super funds' investment screens could extend to tax Australian Financial Review, 23 August 2015.
  18. HESTA decision to dump Transfield marks turning point for shareholder activism Australian Financial Review, 22 August 2015.
  19. Transfield in the heart of hot debate on ethical investment Sydney Morning Herald, 21 August 2015.
  20. Transfield's detention centre risks has shareholder Allan Gray wary Australian Financial Review and Sydney Morning Herald, 21 August 2015.
  21. Union claims victory for forcing HESTA to sell Transfield Australian Financial Review, 21 August 2015.
  22. Transfield chief rebuts on governance Australian Financial Review, 21 August 2015.
  23. Super funds put more pressure on Transfield Australian Financial Review and Sydney Morning Herald, 20 August 2015.
  24. Why super funds are ramping up divestment plans Business Spectator, 20 August 2015.
  25. ‘Divesting from cruelty’: super fund rejects Transfield The New Daily, 19 August 2015.
  26. HESTA divests from Transfield Financial Standard, 19 August 2015.
  27. Funds about retirement not politics Australian Financial Review, 19 August 2015.
  28. HESTA dumps Transfield citing detention centre abuses Australian Financial Review and Sydney Morning Herald, 18 August 2015.

Other commentary

  1. Universities should operate in an ethical and socially responsible manner, Bill Mitchell on billy blog, 15 September 2015.
  2. Transfield lobbies Australian Council of Superannuation Investors (ACSI) to stem divestments, Cross Border Operational Matters, 27 August 2015.
  3. How managed is the conversation on #UniSuper?, Cross Border Operational Matters, 26 August 2015.
  4. "Super fund dump" letter Sydney Morning Herald, 24 August 2015.
  5. Four Things You Should Know About #HESTAdivest #NauruInquiry #Transfield #UniSuper Cross Border Operational Matters, 23 August 2015.
  6. Australian Financial Review Loses Its Mind Over #HESTADivest. Why would that be? Cross Border Operational Matters, 19 August 2015.
  7. ASU supports HESTA divestment from Transfield Australian Services Union National Office, 19 August 2015.
  8. HESTA divests from Transfield Services Australian Nursing & Midwifery Federation (Victorian Branch), 19 August 2015.
  9. Gosford Anglican Church sign "HESTA Divests Transfield. Good on ya!"

Super funds and fund managers that invest in Transfield Services

  1. REST (Retail Employees Superannuation Trust) Industry Super became a substantial shareholder (more than a 5% stake) in Transfield Services in June 2015.
  2. Cbus Super, construction and building industry super fund.
  3. VicSuper, super fund based in Victoria.
  4. NGS Super, industry super fund for education and community-focused organisations.
  5. Sunsuper, super fund based in Queensland.
  6. Allan Gray, fund management firm and largest shareholder in Transfield Services with almost 19% ownership of the company.
  7. Invesco Australia, fund management firm which became a substantial shareholder in February 2015.

Super funds that have divested from Transfield Services

  1. NGS Super, industry super fund for education and community-focused organisations, divested on 25 August 2015.
  2. HESTA, divested on 18 August 2015.
  3. First State Super, divested in approximately July 2015.
  4. Christian Super, divested in March 2015.

HESTA divest.

Disrupt Transfield.

End mandatory detention.