Sustainable Responsible Investment (SRI) balanced

Prime Super has offered a Sustainable Responsible Investment (SRI) balanced option to members since 1 January 2019.

The SRI option allows members to more clearly reflect their social and environmental values in their superannuation investments, and/or avoid some industries altogether.

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 environmental, social, and governance (ESG) factors. Factoring these issues into investment decision-making is done through a combination of methods.

Firstly, the mandate 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.

Secondly, it limits exposure to companies that generate more than 10% of revenue from the production of alcohol and tobacco, provision of gambling facilities, manufacture of weapons and armaments (including uranium mining for manufacturing these weapons), manufacture or distribution of pornography, extraction of thermal coal and production of oil sands.

The manager may, at times, not completely divest from some companies. This means it can vote at company annual general meetings (AGMs) to support resolutions in its client’s best interests and vote against measures considered to be unfair, unreasonable, or detrimental to the company’s ability to generate solid returns for shareholders.

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.

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

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Asset class Target asset allocation Range
Growth assets 71.5%    
Australian Shares 30.0% 20.0-40.0% View breakdown
Developed Markets 30.0% 20.0-40.0% View breakdown
Property 4.0% 0.0-20.0% View breakdown
Absolute Return Strategies 7.5% 0.0-20.0%  
Defensive assets 28.5%    
Australian Fixed Interest 8.0% 0.0-25.0% View breakdown
Overseas Fixed Interest 5.0% 0.0-25.0% View breakdown
Cash 8.0% 0.0-20.0% View breakdown
Absolute Return Strategies 7.5% 0.0-20.0%  
Total 100%    

Top 5 asset breakdown for

*Asset allocation as of 30 June 2020 for the selected investment option.

Asset allocation chart

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Top 5 asset breakdown chart for

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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.

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