UniSuper’s APA Sell-Off Raises Concerns About Industry Super Funds

UniSuper, one of Australia’s largest industry super funds, has sold a 5.3% stake in APA Group (ASX: APA) through JPMorgan Chase (NYSE: JPM), raising fresh questions about whether industry super funds are prioritising member returns.

Who Is The APA Group?

APA Group is a leading energy infrastructure business focused on delivering reliable energy to Australian communities. The company’s infrastructure includes natural gas pipelines, renewable energy projects, and power generation assets, serving as a critical part of the country’s energy network. APA’s mission is to strengthen communities through responsible energy, balancing reliable service with sustainability.

A Discounted Sale Hits Members' Returns

UniSuper’s stake was offered to fund managers at $7.23 to $7.43 per share—a 2.7% to 5.4% discount from the last traded price of $7.64. Following the sale, APA’s stock slipped to $7.21, suggesting UniSuper may have sold too early, potentially missing out on future gains. Before the sale, UniSuper held nearly 10% of APA, making it the company’s largest shareholder.

Environmental Pressure Behind the Sell-Off?

The sale coincides with mounting pressure from environmental advocates—including Peter Singer, Lesley Hughes, and David Karoly—who urged UniSuper to oppose APA’s plans to develop gas pipelines in the Beetaloo Basin. While UniSuper hasn’t officially linked the sale to these calls, the timing raises questions about whether activist demands are influencing investment decisions.

Are Industry Super Funds Putting Values Over Returns?

This situation reflects a growing trend of industry super funds prioritising environmental, social, and governance (ESG) goals over financial performance. Critics argue that while ESG initiatives may align with some values, they risk undermining returns for everyday Australians relying on super for retirement.

Time To Re-Evaluate Your Super Strategy?

As industry funds like UniSuper navigate between profits and politics, poorly-timed sales raise concerns about whether member interests are being protected.

If you’re concerned about your super’s direction, get in touch with the team at Supavest to discuss how you can invest your super in brand-new house and land builds!