Unfortunately, most Aussies probably don’t pay as much attention to their superannuation affairs as they should. Even if you’re not very interested in your super, most of us would agree that the custodians of our retirement funds should be using their power for the greater good. 

Australian Super funds invest a lot of our money in S&P/ASX 200 Index (ASX: XJO) shares. That gives them considerable weight to throw around when it comes to attending annual meetings and voting on company matters. Especially on issues like climate change, gender equality and other ethical concerns.

Unfortunately, new reporting from Business Insider indicates that most super funds’ bark isn’t quite matching up to their bite on these matters. The Business Insider article quoted the Australasian Centre for Corporate Responsibility’s (ACCR) Director of Climate and Environment, Dan Gocher in saying:

“Just 7 out of 50 funds have shown sustained support for shareholder proposals over 3 years, putting into question the responsible investment practices of a large number of funds.”

On matters of climate change, only 7 of the largest funds supported proactive climate change policies more often than they’ve opposed them over the last 3 years. The reporting notes that there were some funds that barely supported any pro-climate policies at all.

On matters of gender pay equality, we saw a similar story with 9 funds supporting more measures than opposing.

Turning to political lobbying transparency, it was even worse. Just 5 of the funds had positive voting records.

Make a difference with your Australian super fund

If you find these statistics upsetting, I don’t blame you. Super is our money at the end of the day. And I think that by extension, super funds, as the custodians of our money, should reflect the views of the people whom ‘their’ capital truly belongs to when it comes to having a say on how ASX companies are run.

If you feel strongly about this, I would suggest contacting your super fund and letting them know your views. Perhaps you could even switch your fund to a more ‘activist’ option if you’re still not happy.

For better or for worse, money talks in the world of investing. Thus, if you want your money to speak your values, it might be a good time to make it so.  There are super funds out there that specialise in ethical investing, but you should still make sure you are getting a good deal on your fees and performance returns. Money talks louder when it’s growing at the fastest rate possible!

More reading

• Latest 3 ASX buy ideas from leading brokers
• Here are another 2 insanely cheap ASX 200 shares to buy right now
• 2 crazy cheap ASX 200 shares you could still buy
• These ASX bank stocks just got upgraded by top brokers to “buy” – and they aren’t the big four
• Does the ASX 200 just follow the US markets?

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post How Australian super funds are letting the team down on ethics appeared first on Motley Fool Australia.

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Earlier today, my colleague Lina Lim outlined 2 crazy cheap ASX 200 shares that are still in the buy zone. With the S&P/ASX 200 Index (ASX: XJO) rallying yet again today, it’s becoming harder and harder to sniff out such bargains. But luckily, I’ve found 2 more. 

With many effects of the coronavirus pandemic on our economy still unclear, ASX bargain hunting these days can be fraught, in my view. Usually, the few shares that are ‘cheap’ are priced that way for a good reason.

But here are the 2 ASX 200 shares I think are still cheap enough today to warrant some bargain buying and why.

BHP Group Ltd (ASX: BHP)

BHP is the ASX 200’s largest miner and a truly global player on the commodities scene. Just to be clear, BHP shares are not as cheap as they were even just a few weeks ago. In fact, the BHP share price has climbed 50% since the lows we saw in March.

But here’s why I’m thinking of ‘The Big Australian’ as cheap today. The price of iron ore (BHP’s largest moneymaker) has exploded in recent weeks, even rising above US$100 per tonne last week.

We have seen BHP’s fellow iron ore miner Fortescue Metals Group Limited (ASX: FMG) make new all-time highs, yet the BHP share price is still substantially below the highs we saw last year. As such, I think there is still plenty of room for BHP to run from here – and shower its shareholders with dividend income along the way.

Brickworks Limited (ASX: BKW)

Brickworks has been hit hard by the coronavirus-led crash we saw in March and has yet to approach its pre-crash highs of above $20 per share.

On one level, this is somewhat justified. Brickworks’ primary source of earnings comes from the construction sector, which is one of the most cyclical industries out there. But Brickworks isn’t just a brick company. It has a ‘side hustle’ of renting out some of its lands for rental income in a joint venture with ASX 200 cohort, Goodman Group (ASX: GMG). It also owns a large stake in Washington H. Soul Pattinson and Co. Ltd (ASX: SOL).

As such, I think this company is cheap as chips today. Its stake in Soul Patts alone is worth approximately $1.9 billion, which is pretty good considering the whole company has a market capitalisation of $2.4 billion. Brickworks also has a stellar dividend history and hasn’t cut its payouts since the 1970s. As such, I think this company is a top ASX 200 buy today.

More reading

• Latest 3 ASX buy ideas from leading brokers
• How Australian super funds are letting the team down on ethics
• 2 crazy cheap ASX 200 shares you could still buy
• These ASX bank stocks just got upgraded by top brokers to “buy” – and they aren’t the big four
• Does the ASX 200 just follow the US markets?

Motley Fool contributor Sebastian Bowen owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Here are another 2 insanely cheap ASX 200 shares to buy right now appeared first on Motley Fool Australia.

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With interest rates at record lows and likely to remain there for some time to come, I continue to believe the share market is the best place to put your money.

But where should you invest your funds? Here are two top ASX 200 shares I would invest $5,000 into right now:

CSL Limited (ASX: CSL)

The first ASX 200 share to consider buying with $5,000 is this biotherapeutics company. I believe a recent pullback in its share price has created a buying opportunity for investors. Especially those that are interested in making a long term investment. This share price weakness has been driven by concerns over its plasma collections during the pandemic and the impact this might have on future immunoglobulin and albumin production.

While this is certainly a risk to consider, I’m optimistic that collections will accelerate once the crisis passes. Especially given the higher unemployment levels, which traditionally leads to higher donations. Another positive is that the pandemic is expected to lead to a sharp increase in demand for flu vaccines in the near term. This increase in demand could offset any weakness experienced with immunoglobulin and albumin sales in FY 2021. Outside this, I believe CSL’s pipeline of lucrative therapies have the potential to drive significant sales and profit growth over the next decade. Overall, I think this makes CSL one of the best buy and hold options on the ASX 200 today.

Xero Limited (ASX: XRO)

Another ASX 200 share to consider buying is cloud-based business and accounting software provider Xero. It has really caught the eye in recent years thanks to its stellar recurring revenue growth and the emergence of its operating leverage. This was on display for all to see in FY 2020 when Xero delivered a 29% lift in annualised monthly recurring revenue (AMRR) to NZ$820.6 million and a 52% increase in EBITDA to NZ$139.17 million.

The key drivers of this have been strong growth in subscription numbers, its high retention rate, and a modest increase in average revenue per user. In respect to the former, Xero added 467,000 net subscribers during the 12 months to finish the period at 2.285 million. And while this is a large number, the company estimates that less than 20% of the global English-speaking target market is using cloud-based accounting software at present. Given how superior this type of software is to Excel spreadsheets and notebooks, I expect more businesses to shift to the technology in the coming years. I believe this will support solid subscription and sales growth over the next decade.

More reading

• Is the CSL share price in the buy zone?
• 3 companies with great intangible asset moats
• Why CSL, Harvey Norman, IPH, & Saracen shares are charging higher
• 5 things to watch on the ASX 200 on Wednesday
• How to become a millionaire before your parents with ASX shares

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. and Xero. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Where to invest $5,000 into ASX 200 shares immediately appeared first on Motley Fool Australia.

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