This is a diversified asset option with a moderate to high exposure to risk. It is suitable for people who have a preference for a sustainable approach to investing and are looking for relatively high returns over the medium to long term who can handle fluctuations in returns, even negative returns, from year to year, and who won't be cashing out their super for seven years or more.
- To achieve returns after tax and fees that exceed CPI + 3% per annum over rolling seven year periods.
- To limit the probability of generating a negative return to not more than 4 years in 20.
- To earn a rate of return after tax and fees that is in excess of the median balanced option in an appropriate industry survey over rolling seven year periods.
Time Horizon +7 years l Risk Moderate - High
Investment management fee 2017/18 - 0.80%
|5 years (compound average return)||9.18%|
|10 years (compound average return)||2.51%|
*Inception date: July 2002
Statewide has invested in the AMP Capital Investors’ Responsible Investment Leaders Balanced Fund.
More information about the AMP Capital Investors’ Responsible Investment Leaders Balanced Fund.
This fund uses a multi-manager approach to give investors access to responsible investment opportunities across a wide range of asset classes and to provide greater diversification. In selecting managers, consideration and assessment is made from a financial, social and environmental perspective. From a social and environmental perspective, AMP Capital seeks out managers that are identifying leaders across industries, in their responsible approach to the following issues:
• environmental considerations – including energy and resource use and product stewardship (for example, where a company takes into account the life cycle of the product, from manufacture to the extent to which the product can be recycled)
• social considerations – including Indigenous relations and community involvement
• ethical considerations – including meeting fundamental human rights, and articulating and implementing a Code of Conduct
• labour standards – including Occupational Health and Safety, International Labour Organization standards, working conditions and the exclusion of child labour
• governance considerations – including meeting corporate governance guidelines on board structures and remuneration.
Managers are also required to avoid companies operating within sectors with recognised high negative social impact. This means the fund will avoid exposure, either directly or indirectly through underlying managers and funds, to companies with material exposure to:
• the production or manufacture of alcohol
• nuclear power (including uranium).
Material exposure is considered to be where a company derives more than 10% of its total revenue from these industries. In addition to these industries, AMP Capital Investors also seeks to limit the fund’s exposure to companies which have a material exposure to the most carbon intensive fossil fuels. Any company that has more than a 20% exposure (as measured by percentage of market capitalisation, or other appropriate financial metric) to one, or a combination, of the activities below will be excluded from the fund’s investable universe:
• mining thermal coal
• exploration and development of oil sands
• brown coal (lignite) coal-fired power generation
• transportation of oil from oil sands
• conversion of coal to liquid fuels/feedstock.
If a company falls below the stated responsible investing standards, it is AMP Capital Investors’ policy that the relevant manager sells its investment in the company within six months. This policy is monitored and if a manager breaches the policy, AMP Capital Investors may terminate the services of the relevant underlying manager. The policy also requires that the managers review individual companies if there are major changes, such as takeovers or major environmental incidents.
Presently the responsible investing approach applies to the Australian and international share components of the fund, together with direct property investments, corporate and government bonds, and alternative investments.
Currently the fund does not take environmental, social and ethical considerations, labour standards and corporate governance factors into account in respect of listed property and cash, although they may be included for consideration in the future.
While we all want consistently positive super returns over the years, the reality is, super returns are like any investment in that they can go down as well as up. If you want to find out more about what type of investor you are, use our risk profile calculator to determine your appetite for risk, check out historical returns and read the pros and cons of switching.
Investment returns are not guaranteed, all investments have risk, and past performance is not an indicator of future performance.
*The fees stated for 2017–18 are estimated third-party investment management fees (including performance fees), based on our current asset allocation and the investment managers who currently manage money for that investment option. The fees stated are therefore predictive and may differ materially from the fees actually incurred. The actual investment management fees are calculated at the end of each year when returns for the full year are known. These are published in the annual report. There is an additional investment fee of 0.02% p.a to cover the costs associated with investing your money.