The fund's aim is to achieve an investment return, after tax and investment expenses of at least 3.0% per annum above CPI, over rolling 10 year periods. This forms the basis of where we choose to invest your money. We expect to exceed the investment objective in the majority of years in the rolling 10 year periods.
For Australian Catholic Super and Retirement Fund members wishing to take a stronger stance in relation to ESG and Responsible Investing, the Trustee offers an investment option that takes into account ethical issues such as labour standards, and environmental and social concerns. This option is currently invested in the Australian Ethical ("AE") Balanced Fund.
However, the Trustee may change investment managers and/or products in future.
In selecting investments for the Fund, consideration and assessment is made from a financial, social and environmental perspective.
The SRI Option managed by AE shall seek out investments which provide for and support:
- the development of workers’ participation in the ownership and control of their work organisations and places
- the production of high quality and properly presented products and services
- the development of locally based ventures
- the development of appropriate technological systems
- the amelioration of wasteful or polluting practices
- the development of sustainable land use and food production
- the preservation of endangered eco-systems
- activities which contribute to human happiness, dignity and education
- the dignity and well-being of non-human animals
- the efficient use of human waste
- the alleviation of poverty in all its forms
- the development and preservation of appropriate human buildings and landscapes.
The Fund shall avoid any investment which is considered to unnecessarily:
- pollute land, air or water
- destroy or waste non-recurring resources
- extract, create, produce, manufacture, or market materials, products, goods or services which have a harmful effect on humans, non-human animals or the environment
- market, promote or advertise, products or services in a misleading or deceitful manner
- create markets by the promotion or advertising of unwanted products or services
- acquire land or commodities primarily for the purpose of speculative gain
- create, encourage or perpetuate militarism or engage in the manufacture of armaments
- entice people into financial over- commitment
- exploit people through the payment of low wages or the provision of poor working conditions
- discriminate by way of race, religion or sex in employment, marketing, or advertising practices
- contribute to the inhibition of human rights generally.
Australian Ethical believe the more money doing good for the planet, the better. Since 1986 they have applied the 23 principles of the Australian Ethical Charter
to invest in ethical and responsible initiatives that have a positive impact on the planet, people and animals while achieving competitive long-term returns. They avoid investments in corporations that engage in harmful practices such as coal, oil, weapons, tobacco, gambling and human rights abuses. They refer to the Charter that it not only influences the investment choices, but underpins every aspect of their business practices.
Australian Ethical also uses its influence as an investor to encourage companies to maximise the positive impacts of their activities, and to minimise their negative impacts.
If a company is assessed to breach Australian Ethical’s ethical frameworks, it is Australian Ethical’s policy that the company will be divested from the portfolio as soon as practically possible without unduly affecting the portfolio’s performance.
Other investment options
For all other investment options, decisions about the selection, retention or realisation of investments are based on a number of factors.
Australian Catholic Superannuation is committed to delivering the highest possible return on its investments to its members while assessing and managing foreseeable risk factors as effectively as possible.
In selecting its investments and investment managers, the Fund is cognisant of the general risk characteristics of each asset class and of the investment styles of each of the managers that it appoints.
We recognise that environmental, social and corporate governance (ESG) considerations can have a positive influence on the financial performance of companies, particularly over the long term.
The Trustee encourages each external investment manager to consider ESG factors alongside traditional financial measures when making investment decisions. However, we do not have a predetermined view or methodology for considering ESG issues.
For more information on our responsible investing initiatives, refer to our Responsible Investment Policy which is available on our website.
UN Principles for Responsible Investing
The Trustee has adopted the United Nations Principles for Responsible Investing which require the Fund to:
- incorporate ESG (environmental, social and governance) issues into investment analysis and decision making;
- be active owners and incorporate ESG issues into ownership policies and practices;
- seek appropriate disclosure on ESG issues by the entities in which we invest;
- promote acceptance and implementation of the Principles within the investment industry;
- work together with other signatories to enhance our effectiveness in implementing the Principles and;
- report on our activities and progress towards implementing the Principles.