Socially Responsible investment option takes big stride forward

Changes are happening with our Socially Responsible investment option designed to target positive impacts on some environmental and social issues that investing may achieve.

From 1 July 2020, QSuper will be the manager of the Socially Responsible investment option. The option has previously been managed by AMP Capital Investors Limited. The change means QSuper will manage the option on behalf of members who have selected this option, and will make changes to the way the option is managed and what sort of assets it will include.

Making a positive impact

The QSuper Socially Responsible investment option focuses on making a positive impact on the environmental and social considerations members have told us they care about most.

This includes a more holistic Socially Responsible investment option that targets a positive impact on certain environmental and social issues, rather than just avoiding assets that may have a negative impact.

The option also aims to deliver on the same financial investment objectives of strong returns with fewer ups and downs, in line with QSuper’s unique investment approach.

How we consider socially responsible priorities

QSuper members have told us the issues that they care about when it comes to socially responsible investing.

In late 2019 we surveyed more than 1600 current and previous members in the existing Socially Responsible option as well as a random sample of QSuper members – and non-members – which gave us a clear idea about the issues most important to many investors. This informed the development of our option.

The Socially Responsible option, available to QSuper members, invests in assets such as clean energy, health care and education, and has minimal or no exposure to assets that have negative environmental or social impacts such as fossil fuels, gambling or adult entertainment.

To measure how these investments help support people and the planet, members invested will receive annual reports that keep track of the positive impacts of the investments.

The principles that guide our Socially Responsible investment option include:

• Seeking assets that can help contribute to positive impacts, while avoiding controversial investments
• Keeping members informed about the positive impact of their investments.

What are the socially responsible investment assets?

The Socially Responsible option aims to make a positive impact on environmental and social issues, with a focus on:

• Clean energy
• Conservation and the environment
• Waste reduction and recycling
• Food and water scarcity
• Medical and technological innovation
• Education
• Health care
• Green building

This option will avoid:

• Fossil fuels
• Gambling
• Adult entertainment

As with all our other investment options (excluding Cash, Diversified Bonds and Self Invest), the Socially Responsible investment option also does not directly own shares in companies involved in manufacturing cigarettes and other tobacco products, cluster munitions, or landmines.

What makes this socially responsible option different

The QSuper Socially Responsible option may differ to other options available in the market in a number of ways.

Similar to QSuper’s other diversified investment options, the Socially Responsible option has a strategically-diversified balance of asset classes that may include infrastructure, real estate and alternative assets, not just listed assets. In this way, members will benefit from QSuper’s recognised ‘risk balanced’ strategy and philosophy.

QSuper also considers how each asset class works together to help the total portfolio deliver positive environmental and social impacts. This is in contrast to many socially responsible options in the market that may simply focus on avoiding companies with negative impacts in the equity asset class.

Thirdly, to keep track of the effect of the option, not just the financial returns, QSuper will report on the positive impacts achieved by those assets.

Member priorities on environmental and social issues will also continue to be monitored through ongoing surveys.

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