Balanced Socially Responsible
Pension investment option
Return objective
- To outperform an average annual return of CPI plus 3.5% p.a.over rolling 10-year periods (net of all fees and tax except the weekly administration fee).
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 via exposure to companies and issuers that demonstrate leading environmental, social and corporate governance and ethical practices while avoiding exposure to companies and issuers with activities that are considered to negatively impact the environment or society.
- Further information about what ESG factors and exclusionary screens are applied when making investment decisions can be found below in the ‘Investment Strategy’ section.
- This option is likely to produce a negative return in 4 to 6 years in every 20 years.
Risk level
- High
Investor profile
The Balanced Socially responsible option currently invests in the Pendal Sustainable Balanced Fund (SB Fund). 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 Alternative investments.
Sustainability criteria and exclusionary screens are incorporated into the Australian and international shares, Australian and International fixed interest and part of the Alternative investments asset classes. Exclusionary screens are not applied to certain asset classes and financial instruments. Further information about how sustainable and ethical investment practices are incorporated into investment decisions and ‘Exclusionary screens’ can be found in the ‘Investment Strategy’ section of the PDS for this investment option.
- 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 period.
- Minimum suggested time frame for holding the investment is 5 years.
Investment Strategy
The Balanced Socially responsible option (via the SB Fund) has a sustainability objective which aims to support the transition to a more sustainable economy (the Sustainability Objective)^
The SB Fund aims to support this Sustainability Objective by aligning 50% or more if its capital (within Australia and International shares, Australian and International fixed interest and part of the Alternative investments asset classes of the Fund) in aggregate with investments that advance this transition.
Pendal aim to do this by allocating capital to investments that in their view:
- Support positive environmental and/or social change via their investment processes, use of capital and/or approach to active ownership; and
- Avoid exposure to companies and issuers with business activities that negatively impact the environment and/or society
The SB Fund’s Sustainability Objective does not apply to derivatives.
Pendal applies its sustainability assessment to investments in the SB Fund’s Australian and International shares, Australian and International fixed interest and part of the Alternative investments asset classes of the SB Fund. Within these asset classes, it assesses an investment’s sustainability characteristics for alignment with the SB Fund’s Sustainability Objective.
Pendals’ sustainability assessment may consider the following types of sustainability characteristics:
- Positive screening or tilts;
Pendal considers whether the investment has astrategy in place that intentionally favours companies or assets that are considered to support positive environmental and/or social change via their investment processes; - Approach to active ownership;
Active ownership refers to the influence that can be applied to management teams and relevant stakeholders of investee companies and assets by asset owners via engagement and voting activities; - Exclusionary screening process
Pendal considers the investment’s approach to screening out securities that are considered to negatively impact the environment and/or society1; and - Sustainability reporting.
Pendal considers the investment’s approach to reporting their sustainability targets and commitments.
Pendal continually monitors the sustainability characteristics of the SB Fund’s investments.
If Pendal determines that an investment no longer meets the SB Fund’s sustainability criteria, Pendal may choose to engage with the underlying manager, company or issuer to address the issue. If the engagement is unsuccessful, Pendal may divest the holding (usually within six months) having regard to the interests of investors. The time it takes to sell an investment depends on factors including, but not limited to, the size and liquidity of the investment (which may have an impact on the SB Fund’s performance returns), and the time it takes for us to assess suitable replacement investments that meet the SB Fund’s exclusionary screens and sustainability criteria.
^Pendal defines a sustainable economy as an economic system which balances environmental, social, and economic factors.
1 As defined by the SB Fund’s exclusionary screens and gross revenue thresholds
For more information about this investment option and the Exclusionary Screens that are applied when making investment decisions refer to our Product Disclosure Statement (PDS) relevant to your product.
Disclaimer
All investment performance and unit pricing is net of tax and fees, except the weekly $0.99 Administration fee. Returns have not been adjusted for the affect of any fee capping arrangement and are rounded to one decimal place. 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 also read the Target Market Determination. You should consider obtaining personal advice from a licensed financial adviser before making any decision based on matters included on this website.
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.
In the instance of a unit pricing error for exited members, compensation will be paid where the amount of compensation is $20 and above.
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.
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.
What we invest in
Portfolio holdings disclosures as at 31/12/2024
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