Rest adds impact fund to portfolio

Australian industry superannuation fund, Rest, has announced the addition of the Palisade Impact Fund to its portfolio, in an effort to solidify its commitment to impact investment allocation.

This comes as the super fund also confirmed its target of one per cent allocation to impact investments by 2026, with the Palisade Impact Fund as its first investment.

Rest’s Deputy Chief Investment Officer, Simon Esposito, said the fund’s commitment to impact investing targets contributes to its overall responsible investment strategy that seeks to grow members’ super, generate strong financial returns and funds a “more sustainable future”.

“Significant investment is required to address the scale of climate change and energy transition and the road to net zero creates investment opportunities,” he said.

“We are proud to invest with impact and with Palisade.”

The Palisade Impact Fund operates across three-pronged approach, focusing on assets that provide tangible and practical solutions to “social disadvantage and climate change by investing in next generation infrastructure” and critical services businesses.

The three streams include:

• “Organic waste to energy conversion: biogas, biofuel and reducing waste and wastewater;
• Resource efficiency: technology for smarter and greener energy services; and
• Digital connectivity and equity: low-cost internet and digital solutions for low socio-economic households.”

“At Palisade Impact we believe that impact investment delivers value and we look forward to delivering a strong return coupled with a strong environmental and social impact for Rest’s members,” Steve Gross, CEO at Palisade Impact, said.

“I’ve known the team at Rest for a long time and it’s an honour to be working with them again.”

Esposito said Rest’s decision to add Palisade Impact to its portfolio came down to the part Palisade’s investments will play in securing Australia’s economy as it transitions to net zero.

“The nature and opportunity set of infrastructure assets is changing rapidly with significant disruption to legacy assets through technology developments, decarbonisation and greater consideration of social impacts,” he said.

“As a result, it’s important for Rest to have exposure to the next generation of infrastructure assets that have the potential to deliver strong member returns over the medium to longer term.

“We’ll continue to seek quality impact investments opportunities that enhance the financial interests of our members.”