Ethical Diversified
December 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 timeframe of 5 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 (“ESG”). The Ethical Diversified option excludes investments in certain companies that do not meet its exclusionary screens. Performance may consequently be different from other investment options that do not follow these screens. You can see our Responsible Investment Policy and more information about the Ethical Diversified option and its exclusionary screens on our Responsible investment approach webpage. |
| 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 five-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 five-year period.
|
| Minimum suggested |
Five years |
| Risk band#: |
6 - HIGH |
| Estimated number of negative annual returns#: |
4 to less than 6 over any 20-year period |
How is the Ethical Diversified option invested?
The Ethical Diversified option is a single manager option currently managed on behalf of ESSSuper by Pendal Fund Services Limited ("Pendal"). By investing with Pendal, money is pooled together with other investors' money to buy investments and Pendal manage the investments on behalf of all investors. Pendal will allocate ESSSuper units based on our entry price.
According to its Product Disclosure Statement for the Pendal Sustainable Balanced Fund, Pendal invests in Australian and international shares, Australian and international property securities, Australian and international fixed interest, cash and alternative investments. Derivatives may also be used. For Australian and international shares and Australian and international fixed interest, Pendal uses an active security selection process that combines sustainable and ethical criteria with Pendal's financial analysis.
Pendal actively seeks exposure to securities and industries that demonstrate leading ESG practices. Pendal will not invest in companies and issuers with material business involvement in the production of tobacco or alcohol, the manufacture of provision of gaming facilities, manufacture of weapons or armaments, manufacture or distribution of pornography, directly mine uranium for the purpose of weapons manufacturing and the extraction of thermal coal and oil sands productions. Pendal says that material business involvement in an activity is where 10% or more of its total revenue is derived from that activity.
For more information and our Responsible Investment Policy, please visit our Responsible investment approach webpage.
Investment option performance
Our annual returns page shows the annual and long-term average returns for this option listed by product.