Skip to Content

Sustainable Responsible Investment (SRI) balanced

Prime Super has offered a Sustainable Responsible Investment (SRI) balanced option to members since 1 January 2019. This option allows members to more clearly reflect their social and environmental values in their superannuation investments, and/or avoid some industries altogether.

It offers the potential for long-term growth, diversification across a broad range of asset classes, and invests in companies that show leading environmental, social and corporate governance (ESG) and ethical practices. It also avoids exposure to companies involved in activities we consider to negatively impact the environment or society. 

  • Who manages the SRI option?

    Currently, Pendal Institutional Limited is the only appointed investment manager for the SRI option. The investment philosophy of the Pendal sustainable balanced mandate is to have exposure to an actively managed diversified portfolio of investments across a wide range of asset classes, incorporating ESG factors. Factoring these issues into investment decision-making is done through a combination of methods.

  • What kinds of investments does this option include?

    The SRI option actively seeks exposure to securities and industries that demonstrate leading ESG and ethical practices. The assessment process may consider multiple factors relating to environmental management, social practices, and corporate governance and business conduct. The criteria applied to investments may lead to the exclusion of some industry sectors or companies from the portfolio.

  • What kinds of investments does this option exclude?

    The Fund will not invest in companies or issuers directly involved in either of the following activities:

    • tobacco production; or
    • controversial weapons manufacture (such as cluster munitions, landmines, biological or chemical weapons, depleted uranium weapons, blinding laser weapons, incendiary weapons, and/or non-detectable fragments).

    The Fund will also not invest in companies or issuers directly involved in any of the following activities, where such activities account for 10% or more of a company’s or issuer’s total revenue:

    • the production of alcohol;
    • manufacture or provision of gaming facilities;
    • manufacture of non-controversial weapons or armaments;
    • manufacture or distribution of pornography;
    • direct mining of uranium for the purpose of weapons manufacturing; or
    • extraction of thermal coal and oil sands
  • How do we engage companies within the SRI option?

    The manager emphasises the importance of investment stewardship by actively engaging with the management of companies to manage risk, effect change, and realise potential value over the long-term. They tailor engagement objectives based on each companies’ circumstances on themes that can include business ethics, corporate conduct, board structure, reporting, and disclosure or employee health and safety.

  • What categories of assets does the option include?

    The Fund invests in Australian and international shares, Australian and international property securities, Australian and international fixed interest, cash and alternative investments, with a higher weighting towards growth assets than defensive assets. The Fund may also use derivatives.

    Sustainable and ethical investment practices are incorporated into the Australian and international shares, Australian and international fixed interest and part of the Alternative investments components of the Fund. All other investments by the Fund are not assessed for sustainable and ethical investment practices. 

  • Other investment details

    Alternative investments refer to a range of investments that do not fall within the four main asset classes of shares, property, fixed interest and cash. They can be based on publicly traded securities like shares, bonds and derivatives, which include hedge funds, absolute return funds and commodity investments. Some alternatives are based on private securities; these include venture capital and private equity. Investment strategies that may be found in some alternative investments include the use of gearing, short selling (selling something you do not own with a view to buying it back later at a lower price), and more extensive use of derivatives.

    The Fund has assets that are denominated in foreign currencies. This means that changes to the Australian dollar relative to foreign currencies may affect the value of the assets of the Fund. The international fixed interest and international property securities exposures are fully hedged to the Australian dollar to the extent considered reasonably practicable. Generally, the Fund’s international share and alternative investment exposures are partially hedged, though the extent of this may vary over time.

    The Fund may use derivatives to achieve its investment objective and to gain exposure to assets and markets. Derivatives may also be used to reduce risk and can act as a hedge against adverse movements in a particular market and/or in the underlying assets.

Please see below for more information on this investment option, including investment performance.

This option commenced on 1 January 2019.

Suitability

Members who seek moderate to high returns over the long term and have a strong ethical conviction

Investment Objective

To outperform the CPI (after tax and investment expenses) by at least 2.5% per annum over the long term

Time horizon

7 or more years

Investment style

Invests in a cross-section of diversified assets with an emphasis on growth from socially responsible investments over the long term and reduced risk

Risk level

High Likelihood of less than 6 negative returns every 20 years

Rotate for best view or swipe horizontally to see all columns
Asset class Target asset allocation Range
Growth assets 72.5%    
Australian Shares 26.0% 20.0-40.0% View breakdown
Developed Markets 34.0% 20.0-40.0% View breakdown
Absolute Return Strategies 7.5% 0.0-20.0%  
Listed Property 5.0% 0.0-20.0%  
Defensive assets 27.5%    
Australian - Fixed Interest 8.0% 0.0-25.0% View breakdown
Overseas - Fixed Interest 7.0% 0.0-25.0% View breakdown
Cash 5.0% 0.0-20.0% View breakdown
Absolute Return Strategies 7.5% 0.0-20.0% View breakdown
Total 100%    

Top 5 asset breakdown for

*Asset allocation as of 31 December 2020 for the selected investment option.

Asset allocation chart

Click or tap on a segment to view further details

Top 5 asset breakdown chart for

Hover or tap on a ring to view further details.

This website contains general information only and does not take account of your personal circumstances. You should obtain personal advice where appropriate. This content is current as at the date of publication and subject to change. Prime Super (ABN 60 562 335 823) is issued by Prime Super Pty Ltd (ABN 81 067 241 016, AFSL 219723). A Product Disclosure Statement is available from the issuer by calling 1800 675 839. Past performance is not a reliable indicator of future performance.