Australia's largest superannuation fund, AustralianSuper, has sold more than $26 million worth of shares in poker machine manufacturer Aristocrat from its socially aware investment option. The move follows sustained criticism of the fund's support for the gambling industry.
The decision came after a review of investments to ensure the fund met the expectations of its ethically minded members. AustralianSuper confirmed on Friday that the socially aware fund no longer holds any Aristocrat shares, having sold them rather than reallocating them to other funds.
Previously, the socially aware fund only excluded the tobacco industry. It has now banned investments in companies linked to gambling, nuclear weapons, animal welfare concerns, and palm oil. Under new screening rules, the fund will not invest in companies that generate more than 5% of revenue from gambling, including those that license their brand to gambling products.
Despite this change, AustralianSuper's default balanced fund still holds $1.74 billion in Aristocrat shares, up from $920 million in June 2022. The fund's spokesperson said it continues to review Aristocrat's responsible gambling initiatives.
The Alliance for Gambling Reform's chief executive, Martin Thomas, described the divestment as 'highly significant', noting that it signals recognition from the largest super fund that gambling stocks are inappropriate for ethical investors. Other super funds, including Australian Retirement Trust, UniSuper, and Aware Super, have also increased their holdings in Aristocrat, despite warnings about gambling harm.
