Super is a long-term investment and most of us apply set and forget mentality to it.
But have you ever wondered where your super is actually investing your money and if it reflects your personal values? You could be supporting tobacco companies, ammunition manufacturing or coal-seam gas extraction without even knowing it. Does it concern you? Why?
Australian millennials are particularly concerned about sustainability issues, like the corporate behaviour, environment and climate change. However, while millennials are actively making sustainable choices with the goods they purchase, for example reusable coffee cups, they tend to forget about their super.
Super not only works to improve our quality of life in retirement, it can also create positive benefits along the way too if it’s invested in a socially conscious way. If we use it smartly, it can generate value for a wider society.
Responsible investing in Australia has hit a major milestone, with the 17th annual Australian Responsible Investment Benchmark Report 2018 finding over half of all professionally managed investments in Australia are now invested as responsible investments. Environmental, social, corporate governance and ethics considerations now sit alongside financial as critical components informing the investment decisions of the majority of Australia’s professional investors.
We are now at a stage whereby issues such as climate change, human rights, corporate culture, diversity and a whole range of other important sustainability issues are right at the forefront of consideration by Australia’s finance community.
Responsible investing has been overshadowed by many myths and misconceptions in the past. One of them was the perception that responsible investing delivers lower than average returns. This year’s report once again proves that core responsible investment Australian share funds and balanced funds outperformed their benchmark over three, five and ten years.
It’s hugely positive to see this strong growth and performance of responsible investments. We now need to shift our focus to the depth and quality of our responsible investment strategies to ensure the finance sector is delivering better investment outcomes that align with the values of Australians.
You can also find the 2018 benchmark report here - https://responsibleinvestment.org/resources/benchmark-report/
Do care about the impact your super investments make?
Our Senior Partner, Michal Bodi - member of Responsible Investment Association of Austrasia, will be happy to help. Why not give is a call to book an appointment on 02 4229 8533.
Article by Michal Bodi | Senior Financial Planner
General Disclaimer: This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. Please seek personal financial advice prior to acting on this information.