Are your funds invested in line with your values?

Insights

Investments

01 Nov 2019

10 min read

Sustainable investing means different things to different people. If you’re interested in companies that lead the way in sustainable business practices or address global environmental challenges, then UniSuper’s sustainable and environmental investment options are worth considering.

What should you consider when deciding to invest sustainably?

If you're leaning towards investing your super in an ESG option, consider your tolerance for investment risk and investments returns. Each option provides different returns over different periods and with any investment option, past performance is not an indicator of future performance.

Importantly, you don’t need to invest specifically in one of our ESG investment options to be a responsible investor. We consider environmental, social and governance risks across all our investment options. No UniSuper option invests in tobacco companies.

Member examples

Sarah

Take Sarah¹, 38 years old, in Accumulation 2 who knows that with 25 years before she can access her super, is comfortable with higher levels of investment risk to get higher returns. After researching our investment options, she decides to invest in UniSuper’s Sustainable High Growth option.

Sarah is happy that UniSuper's sustainable investment options have the same return objectives as their mainstream equivalent. Her values are important to her, so she wants to avoid industries with exposure to alcohol and gambling. She was pleased that this preference would not compromise her financial future.

She also hopes investing some of her super in a sustainable option makes a positive environmental impact while setting up her financial future in retirement.

Dave

Dave¹ is in the Defined Benefit Division with an accumulation component, which means he can choose where this part is invested. The 55 year old has a reasonable understanding of UniSuper’s investment options.

Interested in UniSuper’s approach to ESG investing, Dave invests his accumulation component in UniSuper’s Global Environmental Opportunities option. He has around 10 years until he retires, and the majority of his super is in the DBD. As a result, he is comfortable with the risks (and associated opportunities) related to addressing global environmental challenges.

For Dave, sustainable investing means having access to investment options that consider factors such as climate change, pollution and clean technology. He also hopes that UniSuper's approach to collaboration with other funds will lead to better environmental outcomes through engagement with companies and policy makers.

Peggy

When 65-year-old Peggy¹ set up the investment strategy for her new UniSuper Flexi Pension, she wanted to ensure that her investments would suit her tolerance for risk.

After attending a retirement information seminar, Peggy had a better understanding of UniSuper’s approach to responsible investing. As she is retired and depends on her pension, she chose UniSuper's Conservative Balanced option.

Given UniSuper's approach to assessing environmental, social and governance factors across all investment options, Peggy is comfortable that any investment choice would be a responsible one. Peggy feels that UniSuper’s engagement with the companies that she invests in will leave a more responsible business environment for generations to come.

What could sustainable investing mean for you?

If you’re interested in environmental, social and governance investments, UniSuper offers three dedicated ESG investment options to meet your interest in this area.

Sustainable Balanced, Sustainable High Growth and Global Environmental Opportunities apply a stricter set of criteria to UniSuper’s overall investment approach. These options may provide the opportunity for you to invest in line with your personal sustainability values.

Learn more about ESG investments or speak to a financial adviser to discuss the options that are right for you.

Disclaimer

The information contained in this case study is not legal, taxation or accounting advice. It is intended to provide general information only. It has been prepared without taking into account your objectives, financial situation or personal needs. Prior to making any investment decisions, you should speak with a financial adviser to consider whether this information is appropriate for your needs, objectives and circumstances. You should also obtain a copy of the relevant product disclosure statement (PDS) prior to making a decision regarding any investment in any financial product. Whilst care has been taken in the preparation of this information, the accuracy or completeness of the information is not guaranteed. This case study was prepared and issued by UniSuper Management Pty Ltd ABN 91 006 961 799, AFSL No: 235907, which is also the administrator of, and wholly owned by, the UniSuper Superannuation fund (ABN 91 385 943 850). UniSuper Limited (ABN 54 006 027 121) is the trustee of the fund. UniSuper Advice is operated by UniSuper Management Pty Ltd, which is licensed to provide financial product advice to members.

1. Sarah, Dave and Peggy are hypothetical members. All information provided in this case study is based on the circumstances detailed in this scenario and it is not guaranteed and will vary depending on your specific circumstances.