Balanced socially responsible investment

Aims:

  • To maximise long-term investment returns.
  • Super & TTR: To outperform an average annual return of CPI plus 3.0% p.a.* over rolling 10-year periods.
  • Pension:To outperform an average annual return of CPI plus 3.5% p.a.* over rolling 10-year periods.
    *net of tax and fees

Risk profile:

Short-term fluctuations will occur, but the highest investment returns are expected over longer periods. This option is likely to produce a negative return in 3 to 4 years in every 20 years.

Risk Level:

High.

Investor profile:

Will suit investors looking for the highest investment returns over the long-term, but who are prepared to accept extreme fluctuations in investment performance.

Investment strategy:

The Balanced socially responsible option currently invests into the AMP Capital Responsible Investment Leaders Balanced Fund (RIL Fund). This is a multi-manager fund operated by AMP Capital that considers environmental, social and governance (ESG) factors when making investment decisions.

Currently the RIL Fund applies ESG factors in the selection of managers who invest in Australian and international shares, direct property, corporate and government bonds and alternative investments. The RIL Fund does not currently consider these factors in relation to investments into cash.

AMP Capital selects the managers of the RIL Fund based on both investment and ESG criteria.

In addition to assessing a manager's investment capability, consideration is also given to a manager's ability to substantially meet the responsible investment criteria outlined in the RIL Fund's Responsible Investment Leaders Charter of Operation ('Charter'). At a minimum, a manager must also be able to meet the negative screening criteria listed in the Charter. Managers will also be well-regarded if they can pro-actively apply sustainable and responsible investment criteria to their security selection approach, above and beyond these exclusions, on behalf of the RIL Fund.

The RIL Fund is governed by an ethical charter which prohibits investments in companies operating within sectors recognised to have a high negative social impact. This means that the RIL 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
  • nuclear power (including uranium)
  • armaments
  • gambling
  • alcohol, 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 RIL 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 20% exposure (as measured by percentage of market capitalisation, or other appropriate financial metric) to one, or a combination of the following:

  • mining thermal coal
  • exploration and development of oil sands
  • brown-coal (or lignite) coal-fired power generation
  • transportation of oil from oil sands, and
  • conversion of coal to liquid fuels/feedstock.

Exclusions may be updated, from time to time, following review and by approval by the RIL Fund's Ethics Committee. Investors will be notified of any changes to the Charter, including changes to the exclusions.

The investment benchmark is 73% growth assets and 27% defensive assets, as shown in the table below:

Growth Assets

  Benchmark % Permitted range %
Australian shares 25 15-40
International shares  30 15-40
Emerging markets 3 0-8
Alternative assets 2 0-6
Global REITs (hedged) 4 0-10
Direct property and infrastructure 9 0-10
Total  73%   

Defensive Assets

  Benchmark % Permitted range %
Australian Fixed interest  13 0-20
International Fixed interest (hedged) 12 0-15
Cash 2 0-20
Total  27%

Minimum suggested time frame for holding the investment is 5 years. 

Further details about the labour standards, environmental, social and ethical that AMP Capital Investors LImited takes into account can be found at ampcapital.com.au.

The Balanced socially responsible option investment strategy was substantially changed on 1 July 2014, and past performance is not reflective of this investment strategy.

Super Investment Performance

Current PerformanceHistorical performance to 30/06/2018
OptionFYTD as at 12/10/20181 Year3 Years5 Years7 Years10 Years
MySuper Balanced-0.1%9.4%8.0%9.4%8.9%6.6%
Cash0.4%1.6%1.7%2.2%2.7%3.2%
Enhanced cash0.4%1.9%2.0%2.3%3.0%3.9%
Conservative0.2%5.2%4.8%5.8%6.0%5.2%
Conservative balanced0.1%7.3%6.4%7.7%7.6%5.9%
Balanced index-0.7%9.4%7.0%8.7%--
Balanced0.0%9.5%8.0%9.4%8.9%6.5%
Growth-0.3%11.1%9.1%10.5%9.9%6.7%
High growth-0.7%12.4%9.8%11.4%10.6%6.9%
Australian shares-1.8%14.3%11.5%11.3%10.0%7.2%
Overseas shares-0.5%12.2%8.9%11.9%11.5%7.0%
Balanced socially responsible-0.3%9.0%5.5%8.0%7.2%4.7%

Pension Investment Performance

Current PerformanceHistorical performance to 30/06/2018
OptionFYTD as at 12/10/20181 Year3 Years5 Years7 Years10 Years
MySuper Balanced0.0%-----
Cash0.5%1.9%2.0%2.5%3.2%3.8%
Enhanced cash0.5%2.2%2.3%2.8%3.5%4.5%
Conservative0.3%5.9%5.4%6.5%6.8%5.9%
Conservative balanced0.0%8.2%7.1%8.5%8.5%6.6%
Balanced index-0.8%10.4%7.6%9.4%--
Balanced-0.1%10.3%8.8%10.2%9.7%7.2%
Growth-0.4%12.0%9.8%11.4%10.8%7.3%
High growth-0.6%13.7%10.8%12.5%12.1%7.9%
Australian shares-2.0%16.1%12.6%12.2%11.0%8.2%
Overseas shares-0.8%12.6%9.6%13.1%13.3%8.2%
Balanced socially responsible-0.4%9.9%6.1%8.9%8.2%5.7%

Super Unit Price History

DateBuy PriceSell Price
12/10/20181.51311.5098
05/10/20181.54601.5426
28/09/20181.55261.5492
21/09/20181.55011.5467
14/09/20181.54711.5437
07/09/20181.54331.5399
31/08/20181.55681.5533
24/08/20181.54611.5427
17/08/20181.54141.5380
10/08/20181.53651.5331

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Pension Unit Price History

DateBuy PriceSell Price
12/10/20181.61071.6072
05/10/20181.65041.6468
28/09/20181.65841.6548
21/09/20181.65531.6517
14/09/20181.65171.6480
07/09/20181.64711.6435
31/08/20181.66341.6597
24/08/20181.65041.6468
17/08/20181.64481.6412
10/08/20181.63891.6353

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