29 Aug 2014
We have refined our approach to our two sustainable investment options to continue to meet member expectations and keep pace with global developments.
From 1 September 2014, alcohol, gaming, weapons and companies involved in fossil fuel exploration and production (in addition to the screening of tobacco) will be excluded from both the Socially Responsible Balanced and Socially Responsible High Growth options. You can read How we invest your money for more detailed information.
We’re increasing the allocation to Australian Listed Property within those options to enhance their diversification. We’ve also changed the names of the two options to:
Will these changes affect performance?
Sustainable Balanced and Sustainable High Growth will no longer be ‘sector neutral’ because we’ll be divesting from certain sectors. We’ve looked at the suitability of this approach from an investment perspective and importantly, we’ve looked at the expected real return of the portfolio and the probability of meeting the investment objective over the options’ suggested timeframes.
Based on our analysis, we estimate that the expected real return rate, the possibility of negative returns over a 20-year period, and the chance of meeting the options’ investments objectives will remain about the same as they were before these changes are implemented.
You can read more about these changes in the latest September investment market update or the August edition of Super Informed, our biannual member newsletter.