This article explores three ethical Super fund options available in Australia, highlighting their investment approach, fees, performance, and example investments.
Do I even have a choice when it comes to my Super?
There’s always a look of shock on someone’s face when they discover they can choose how their Super(annuation) is invested, which only increases when they head to their myGov account to discover that they’ve actually got some.
Our world these days is filled with so many choices and so much information that we can forget how much control we have over our finances. When you start to dive into the world of finance, you’ll start to realise that you have a lot more autonomy over your finances than you may have realised.
Not only can you pick the company you bank with, the insurances you take out or who you invest your super with, but you can actually choose which companies you invest your hard-earned dollars in.
Although it’s just started to gain more media traction in recent years, ethical investing is a concept that’s been practised by investors for years, by considering ESG factors alongside financial returns when they choose where to invest their money.
Head to our Super course and read this article to learn more about this thing that may one day become your biggest asset. You can also explore your current Super fund’s approach to climate change issues on the Market Forces website.
With that in mind, I’ve compiled a list of potential Super funds that offer ethical investment options, so you can have more control over where your $$$ are going.
Australian Ethical
The OG of ethical Super funds – Australian Ethical is a company that has really found its feet in Australia over the last few years. They don’t just offer one ESG portfolio – everything they do has an ethical & sustainable approach. You can learn more about where they stand on various issues here.
- Goal: Their Ethical Charter leans into parts of the economy that are good for the planet, people and animals, and away from harmful sectors (like fossil fuels & mining).
- Management Fees: Growth portfolio – 0.99% p.a
- Admin Fees: $97 per annum, plus 0.29% of your account balance per annum.
- Performance: Click here for the fund’s historical performance data.
- Investment examples: Macquarie University, Sonic Healthcare Limited (ASX: SHL) & Cleanaway Waste Management Ltd (ASX: CWY).
Future Super
Future Super is another purpose-built Super company, that focuses strongly on climate change issues and investing with impact for a better future.
- Goal: Their mission is to invest in a future free from climate change and inequality. This means staying away from fossil fuels and leaning into companies helping build a renewable energy-powered future.
- Management Fees: Renewables Plus Growth Portfolio – 1.488% p.a
- Admin Fees: $93.60 per annum.
- Performance: Click here for the funds historical performance data.
- Investment examples: Bank Australia, Cochlear (ASX: COH) & Home Depot Inc.
AustralianSuper – Socially Aware Portfolio
As one of Australia’s largest Super funds, it’s good to see AustralianSuper starting to offer a more diverse array of investment options. In fact, they’ve committed to achieving net-zero carbon emissions by 2050 from investments.
- Goal: Their Socially Aware portfolio invests using a strict screening based on environmental, social, and governance (ESG) standards. They avoid companies that directly own fossil fuel, produce land mines, and have single-gender boards.
- Management Fees: 0.67% p.a (including performance & transactional fees).
- Admin Fees: $2.25 per week plus up to 0.04% pa of your account balance.
- Performance: Click here for the fund’s historical performance data.
- Investment examples: CSL Ltd (ASX: CSL), A Cloud Guru Ltd & Microsoft Corp (NASDAQ: MSFT)
Other ethical Super fund options
Here are a few other ethical investment options to explore:
- Sunsuper – Socially Conscious Balanced Portfolio
- Hesta Super – Sustainable Growth Portfolio
- Aware Super – Diversified Socially Responsible Portfolio & Australian Equities Socially Responsible Portfolio
- NGS Super – Socially Responsible Diversified Portfolio
