Ethically Minded

December 04 2020

Strategic asset allocations

Important notice:

ESSSuper has terminated AMP Capital Ethical Leaders Balanced Fund as the sole investment manager effective from 15 September 2020 for the Ethically Minded Option. While the Board carefully considers alternative investment managers with a strong focus on ethical investing, members in the Ethically Minded Option will have their super reinvested in a portfolio that very closely matches the risk and return objectives of the Ethically Minded Option. The portfolio will comprise a 70% allocation to the Growth Option and 30% allocation to the Shares Only Option. Investment fees for members in the Ethically Minded Option will temporarily decrease from 0.73% per annum to 0.47% per annum effective from 16 September 2020 while a new investment manager search is underway. The temporary investment will be made in accordance with ESSSuper’s Responsible Investment Policy. This excludes tobacco and controversial weapons investments but has fewer ethical exclusions than the Ethically Minded Option’s investment with AMP.

As at 23 September 2020
(asset allocation ranges are shown in brackets)

Australian shares 24.0% (15-40%)
International shares 32.0% (15-48%)
Property 17.0% (0-20%)
Infrastructure 6.0% (0-7%)
Alternative strategies 4.0% (0-6%)
Credit 8.0% (0-18%)
Sovereign Bonds 7.0% (0-27%)
Cash 2.0% (0-20%)

Suitability: This option may be suitable if you are interested in long term capital growth, can accept short term volatility and are seeking an investment return that excludes some investments on ethical grounds.
Objective* for Accumulation Plan Beneficiary Account & Working Income Stream: To provide a return of 3.5% p.a. after fees and taxes above the rate of inflation over a 10 year period. 
Objective* for Retirement Income Stream: To provide a return of 4.0% p.a. after fees above the rate of inflation over a 10 year period. 
Minimum suggested
investment timeframe:
10 years
Risk band#: 6 - HIGH
Estimated number
of negative
annual returns#:
4 to less than 6 over any 20 year period

Investment Option Performance

Ethically Minded
(period 1 July to 30 June)
Crediting rate % p.a. 
Accumulation Plan Beneficiary Account Retirement Income Stream
2018/19 6.89 6.89 7.64
2017/18 8.11 8.11 9.21

The Ethically Minded option commenced on 1 July 2017. Past performance is not a reliable indicator of future performance and should not be relied upon for making investment decisions.

 


* The investment objectives are not a promise or guarantee of any particular benefit. They represent a benchmark against which the Board monitors the performance of the investments of the Fund.

# The standard risk measure is based on industry guidance to allow members to compare investment options that are expected to deliver a similar number of negative annual returns over any 20 year period. The standard risk measure is not a complete assessment of all forms of investment risk, for instance it does not detail what the size of a negative return could be or the potential for a positive return to be less than a member may require to meet their objectives. Further, it does not take into account the impact of administration fees and tax on the likelihood of a negative return. Members should still ensure they are comfortable with the risks and potential losses associated with their chosen investment option/s.

1The Ethically Minded option is a single manager option currently managed on behalf of ESSSuper by AMP Capital.