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Balanced Socially Responsible

Balanced socially responsible option in detail - for Pension members

Return objective

  • To maximise long-term investment returns.
  • To outperform an average annual return of CPI plus 3.5% p.a. net of tax, investment and administration fees over rolling 10-year periods

Risk level

High

Risk profile

Offers greater emphasis on shares and property to achieve higher returns, but includes some lower-risk assets to moderate short-term risks. Investments are made with a focus on managing sustainability and environmental, social, and governance (ESG) risks. This option is likely to produce a negative return in 4 to 6 years in every 20 years.

Investor profile

Will suit investors looking for moderate to high returns over the medium to long-term, but who are prepared to accept fluctuations in investment performance over shorter periods. 

Minimum suggested time frame for holding the investment is 5 years

Investment strategy

The Balanced Socially responsible option currently invests in the Pendal Sustainable Balanced Fund (SB Fund). This is a multi-manager fund operated by Pendal Group that considers environmental, social and governance (ESG) factors when making investment decisions.

The SB Fund is an actively managed diversified portfolio that invests in Australian and International shares, Australian and International property securities, Australian and International fixed interest, cash and alternatives.

Pendal Group selects the managers of the SB Fund based on a range of sustainable, ethical, and financial criteria that address both investment considerations and responsible investing parameters.

Pendal Group also has a dedicated ESG research team, Regnan, which supports and informs investment decisions through its in-house research, engagement and advisory functions. Investments are selected based on a range of sustainable, ethical and financial criteria.

The SB Fund actively seeks an exposure to securities and industries that demonstrate leading ESG and ethical practices while avoiding exposure to companies with activities or behaviour considered to negatively impact the environment or society. This means that the SB Fund will avoid exposure (either directly or indirectly through underlying managers and funds) to companies with a material exposure to the production or manufacture of:

  • tobacco; 
  • fossil fuels; 
  • weapons (zero % threshold);  
  • uranium (for the purpose of weapons manufacturing); 
  • alcohol; 
  • gaming; and 
  • pornography.

A company deriving more than 10% of its total revenue from these industries constitutes material exposure. In addition, with the combustion of fossil-fuels being the main source of global greenhouse gas emissions, the SB Fund's range seeks to limit exposure to companies which have a material exposure to the most carbon intensive fossil fuels by excluding any company that has more than a 10% exposure (as measured by percentage of market capitalisation, or other appropriate financial metric) to one, or a combination of, the following: 

  • mining thermal coal; and
  • exploration and development of oil sands. 

Exclusions may be updated, from time to time, following review and approval by Pendal Group. Investors will be notified of any changes to the exclusions.

Disclaimers & Assumptions

All investment performance and unit pricing is net of tax and fees, except the weekly $1.30 Administration fee.
Returns have not been adjusted for the affect of any fee capping arrangement. Investment returns are not guaranteed, and past performance is not necessarily a guide to future performance.

This information on this website is general information and does not take into account your specific financial situation, objectives or needs. You should obtain and read the Product Disclosure Statement (PDS) relevant to your account type, found here.

You should consider obtaining personal advice from a licensed financial adviser before making any decision based on matters included on this website.

About unit pricing

Each Investment option (with the exception of the Direct Investment Option) pools member contributions, which are then used to purchase assets such as shares, property, bonds and cash for that option. The assets of each option pool are notionally divided into units – or a share of those assets. The value or price of each unit is determined by the value of the pool of assets. As the value of the assets increase, the unit price rises. If the value of the pool of assets decreases, the unit price falls. If you contribute additional money to an option, you buy more units. If money is withdrawn to pay fees or to pay you a benefit, units are sold. To calculate the value of your investment, you multiply the number of units you have been allocated in the option by the current unit sell price.

Your personal return will differ from the above performance figures depending on your investment option(s), when you joined the fund, transactions, fees charged, and investment switches.

To view your own investment option, and your personal investment returns, log in to MemberAccess. For more information about unit pricing, and investment returns are applied to your account, refer to the relevant Product Disclosure Statement.