Our Investment Philosophy

Good Super recently announced a series of new investment options to provide our members to support a greater range of causes that matter to them. Click for information on Good Super’s legacy investment options.

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We allow our members to select the cause that matters most to them from our list of causes. We achieve this by creating growth focused investment options promoting gender equality, LGBT rights, and animal welfare along with other investment options that exclude specific issues such as fossil fuels. These growth-focused investment options are then paired with a defensive portfolio, the combination of which is determined by you.

Our current investment options include: Good Super, Dump Trump, Boycott Weapons, Boycott Adani, Boycott Fossil Fuels and Coal Seam Gas, Animal Welfare, Deforestation, Gender Equality, LGBT Rights, Excessive CEO Pay, and Cash and Fixed Income.

For detailed information regarding these investment options, please read the Product Disclosure Statement and Reference Guide available on the website.

 

Our Investment Managers


The Trustee has appointed OpenInvest Co, a company based in the United States, to manage Good Super’s investments. OpenInvest was established in 2015 by financial, technology and not-for-profit industry leaders. OpenInvest was founded to merge global causes with advanced, customised investment strategies. Good Super enables members to align their personal values in their superannuation.

Click here for the Good Super’s legacy investment option fund managers.

 

Our Portfolios


Portfolios are structured as a combination of: A) A basket of equities (stocks) that replicate the performance of the market (the themed equity investment options), and B) A cash and fixed income fund (this particular option does not have any screen for environment, social and governance (ESG) issues). Members nominate a cause they wish to support and then choose one equity-based themed investment option. They then determine the allocation they would like to the cash and fixed income investment option. The allocation to the cash and fixed income investment option may be anything from 0%-100%. This blended approach enables members to select their preferred risk profile.

 

How We Invest Our Themed Equity Portfolios


We start with a universe of securities. Currently this is the ASX300 for Australian shares and the MSCI World ex Australia Index for international shares.

Next, we get data* on how companies align with the relevant theme that we support and overlay this on the universe of securities. Depending on the issue and the metric this could result in a company being labelled as positive, negative or neutral for a particular issue.

All of the negative companies, on any theme, are ineligible for that theme’s portfolio. We’ll start building a portfolio from the positive-screened companies and use neutral-screened companies to balance other factors such as sector diversification, beta and average weighted market cap. The resulting portfolio will target 50% of the universe of securities and will closely match the characteristics of the original universe.

For detailed information regarding these investment options, please read the Product Disclosure Statement and Reference Guide available on the website.

*You can read more about the details of this data and the metrics we use below in ‘Portfolio Screens’.

 

How We Invest Our Cash And Fixed Income Portfolio


Our Cash and Fixed Income portfolio is invested in cash and bonds. Bonds are split between international government bonds listed in the iShares International Treasury Bond ETF(IGOV), and Australian government bonds listed in iShares Treasury ETF (IGB). Cash is held with ANZ. No corporate bonds are held in this investment portfolio.

The Cash and Fixed Income investment option implements no Environmental, Social and Governance (ESG) or ethical screens to the portfolio.

For detailed information regarding these investment option, please read the Product Disclosure Statement and Reference Guide available on the website.

 

Rebalancing Your Portfolio


When selecting your investment options and risk category, you consent to Good Super periodically rebalancing your account (assessed quarterly) to maintain your chosen risk category within a range of +/- 5% of your initial allocation. Rebalancing is processed using the sell (or exit) price of units being sold and the buy (or entry) price of units being purchased.

 

Minimum Portfolio Investment


We regularly undertake a review of the investment options available through the Fund and may change, add, close or terminate an investment option at any time. Each themed investment option requires a minimum $100,000 of assets under management before being invested in the designated investments. Prior to this, monies intended for investment in each of the portfolios will be invested in a cash account, with interest generated returned to members during the relevant period. Please refer to the Product Disclosure Statement and Reference Guide for further details.

 

Portfolio Screens


We establish the screens based on a combination of corporate data provided by Thomson Reuters and external data providers for specific causes. The data provides insights into corporate activity and behaviour. External data providers include: the Fossil Free Indexes, the Carbon Underground 200 List, the Human Rights Campaign Corporate Equality Index, Market Forces, Forest 500, and the #Grabyourwallet campaign which lists companies that sell “Trump-branded” products.

MSCI World ESG Leaders Index base screen is applied for international equities. All screen data is reviewed on a minimum monthly basis, or when a revised report is issued by an external data provider- the portfolios are amended if required, to comply with the screen.

The following table provides a description of the screen applied for each investment option in addition to the MSCI World ESG Leaders Index base screen which is applied to the themed equity portfolios.

Investment Option Screen Applied
GOOD SUPER This Good Super option will exclude companies with a material exposure (>10% of revenues) in the following industries or practices:

  • Tobacco;
  • Weapons and armaments;
  • Gambling;
  • Alcohol;
  • Pornography; and
  • Human rights abuses.

Data is provided by Thomson Reuters Asset 4 ESG data set which the Investment Manager applies its own algorithms to asses.Click here to see companies that are specifically included or excluded in this screen.

DUMP TRUMP The Dump Trump Investment Option will apply the following screens:

  • Companies who openly refused to back Trump or removed their support for the Republican Party once Trump was chosen as nominee are overweighted as monitored by the Manager.
  • This screen also excludes the retailers who are boycotted by the #GrabYourWalletcampaign for selling products that bear the Trump name.
BOYCOTT WEAPONS The Boycott Weapons investment option will not invest in companies who derive a significant portion of their revenue (>5%) from the sales of weapons or ammunition.

Data will be provided by Thomson Reuters using their Asset 4 ESG data set. This data set identifies companies included in MSCI World and ASX300 that derive >5% of revenue from the manufacture and/or sales of weapons.

BOYCOTT FOSSIL FUELS AND COAL SEAM GAS The Boycott Fossil Fuel and CSG investment option applies the following screens:

  • Exclude companies who conduct fracking or support those activities as identified by Market Forces.
  • Exclude companies from the top publicly-traded coal, oil, and gas reserve-owning companies globally, ranked by the carbon emission potential of their reported fossil fuel reserves as identified in Carbon Underground 200.
BOYCOTT ADANI The Boycott Adani investment option applies the following screens:

  • Exclude Adani and companies associated with Adani’s Carmichael Project as identified by Market Forces.
  • Exclude companies from the top publicly-traded coal, oil, and gas reserve-owning companies globally, ranked by the carbon emission potential of their reported fossil fuel reserves as identified in Carbon Underground 200.
 GENDER EQUALITY The Gender Equality screens:

  • Any company where a woman holds the position of CEO or chairperson; where the board of executives is filled by over 20% by women, where based on the bell curve of the proportion of managers who are women sit within the 34.1% of companies above the average, are classified as positive.
  • Any company with no women on the board, or based on the bell curve of the proportion of managers who are women, are within the 34.1% below the average company, are excluded.
  • Companies that do not fall into either of the above categories, are weighted as and are identified as ‘neutral.’

Data will be provided by Thomson Reuters using their Asset 4 ESG data sets which identify the key statistics for female board members, executives and managers. The Investment Manager then runs its algorithms to allocate the positive and negative weightings.

LGBT RIGHTS The LGBT Rights investment option will use the Human Rights Campaign produced Corporate Equality Index (CEI). The CEI rates companies out of 100 on their treatment of LGBT employees. The index is strengthened by broad parameters including sexual orientation and gender identity in the company’s non-discrimination policy, domestic partner benefits, transgender-inclusive benefits, organisational LGBT competency, and public commitment to the LGBT community. This screen includes companies rated 80-100 and excludes companies rated 0-20 on the CEI.
 EXCESSIVE CEO PAY This portfolio ranks the average employee pay in comparison with their company CEO’s pay, for each listed company in the authorised investments. The bottom 30% of the universe in terms of pay inequality is excluded from this portfolio.Data is provided by Thomson Reuters using their Asset 4 ESG data sets which identify the ratio of CEO to average employee wage. The Investment Manager then runs its algorithms to identify the bottom 30% of companies by this metric.
DEFORESTATION This investment option will exclude companies with a rank lower than 3 by the ‘Forest 500 Project’ based on the company’s policies and actions towards combating deforestation.The Forest 500 Project is a platform run by the Global Canopy Programme that scores companies, financial institutions, and jurisdictions on a scale of 0-5 based on their policies and actions addressing potential deforestation, with 5 being an optimal score.
 ANIMAL WELFARE This investment option excludes companies who produce or sell meat or that conduct testing on animals, identified by the following industry codes:

  • NAICS Industries: Animal (except Poultry) Slaughtering (311611), Chocolate and Confectionery Manufacturing from Cacao Beans (311351), Dairy Cattle and Milk Production (112120), Dry, Condensed, and Evaporated Dairy Product Manufacturing (311514), Finfish Farming and Fish Hatcheries (112511), Fluid Milk Manufacturing (311511), Hog and Pig Farming (112210)
  • NAICS Industry Groups: Animal Slaughtering and Processing, Cattle Ranching and Farming (112111), Dairy Product Manufacturing, Hog and Pig Farming, Jewellery, Luggage, and Leather Goods Stores (448320), Other Leather and Allied Product Manufacturing
  • TRBC (Thomson Reuters Business Classification) Activities: Aquaculture (5410201019), Cattle Farming (5410201029), Dairy Products 9 5410202019), Meat Processing (5410202016), Textiles & Leather Goods (NEC) (5320201010)

To identify companies that test on animals, the investment manager uses Thomson Reuters Asset 4 ESG data sets that identifies companies included in MSCI World and ASX300 that conduct testing on animals.

CASH AND FIXED INCOME This Cash and Fixed Income investment option offers broad market-like exposure to defensive assets through Exchange Traded Funds which will have exposure to underlying assets such as investment grade government bonds (both domestic and international) and cash, held in ANZ.
The Cash and Fixed Income investment option implements no specific Environmental, Social and Governance (ESG) or ethical screens to the portfolio.

 

Good Super’s Legacy Investment Options


Good Super members who are invested in Good Super’s legacy investment options: Growth, Balanced and Conservative; are managed separately to the new Good Super investment options. Good Super legacy investment options are managed by the following Fund Managers.

Fund Manager Description Further Details
Perpetual
Australian Equities
All Perpetual Funds used by Good Super have been audited by the Responsible Investment Association of Australia and certified as Responsible Investments.

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Perpetual was established in 1886— 131 years ago. They now employ more than 1,000 people and have $30.9 billion of funds under management as at 31 December 2015.
Triodos
International Equities
Triodos was founded with the mission to finance companies, institutions and projects that add cultural value and benefit people and the environment.

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Triodos Bank is one of the world’s leading sustainable banks with EUR$12 billion of assets under management and operates in five countries

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ANZ Cash In 2016, ANZ was again recognised as a leading bank globally on the Dow Jones Sustainability index, scoring 95/100, their highest score to date.

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ANZ Bank has 8,864 employees and a market capitalisation of $91.9 billion dollars (as of 6 January 2017, via ASX).

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Social Ventures Australia Alternative Impact Investments SVA is a non-profit organisation established in 2002 by The Benevolent Society, The Smith Family, WorkVentures and AMP Foundation. Their sole mission is to make investments that result in positive social change.

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Since 2002, SVA has placed $45 million in investments to the social sector, worked with 88 social ventures like Beacon Foundation, Ganbina and AIME, and brokered $165 million to buy out ABC Learning Centres and create GoodStart — a socially responsible early childhood education provider delivering 15% of Australia’s early childhood learning places.

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AMP Capital Australian & International Fixed Income Australian & International Fixed Income. All AMP Funds used by Good Super have been audited by the Responsible Investment Association of Australia and certified as Responsible Investments.

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AMP Capital is part of the AMP Group; with more than 5,400 employees and more than $215 billion in assets under management.

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