Ethical Diversified

November 21 2024

Strategic asset allocations

As at 23 July 2024
(asset allocation ranges are shown in brackets)

Australian shares 26.0% (15–50%)
International shares 34.0% (15–50%)
Property 5.0% (0–20%)
Infrastructure 0.0% (0–20%)
Alternative growth1 15.0% (0–40%)
Credit 0.0% (0–20%)
Defensive fixed income 15.0% (0–30%)
Cash 5.0% (0–20%)

 

Target growth assets: 70%

Target defensive assets: 30%

Suitability: Members with a minimum investment time frame of 10 years that are prepared to accept a high amount of volatility in pursuit of high long term capital growth and are seeking exposure to companies that demonstrate leading environmental, social and corporate governance, and ethical practices, while avoiding exposure to companies with material involvement in activities we consider to negatively impact the environment or society.**
Objective* for Accumulation Plan Beneficiary Account & Working Income Stream: To provide a return of 3.0% 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 3.5% 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

Our annual returns page shows the annual and long-term average returns for this option listed by product.

 

* 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).

1 Investments in the Alternative growth asset class are designed to diversify returns from the portfolio's other (traditional) asset classes. Investments may be held in the form of shares, debt securities, foreign currencies, commodities, hedge funds, and cash.

Note: The Ethically Minded option is a single manager option currently managed on behalf of ESSSuper by Pendal Fund Services Limited.

** The Ethically Minded option will not invest in companies and issuers with material business involvement in the following activities: the production of tobacco or alcohol; manufacture or provision of gaming facilities; manufacture of weapons or armaments; manufacture or distribution of pornography; directly mine uranium for the purpose of weapons manufacturing; extraction of thermal coal and oil sands production. A material business involvement is considered to be any activity where 10% or more of total company revenue is derived from that activity.