Australian Ethical Super

Australian Ethical is a publicly-listed funds management company.

The super fund states that their focus is on investing ethically, and has an ‘Ethical Charter’ which guides their investment decisions..  “All our funds are rigorously screened for ethical and investment merits and are aligned with global Sustainable Development Goals,” it states. “[We] actively steer capital towards companies that are doing good, and away from those who aren’t.”

Australian Ethical offers a choice of seven investment options at the time of writing:

• Defensive (Cash)
• Conservative
• Balanced, Growth
• High Growth
• Australian Shares
• International Shares.

You can choose to invest in one option or a combination of options. You can also switch investment options at any time for no fee.

You do need to make a decision as to which investment option your money will be invested in, as Australian Ethical says they do not offer a default investment option.

For more details on what each Australian Ethical investment option entails, you can contact Australian Ethical or read the PDS and other documentation on its website.

Australian Ethical charges a variety of fees to its members in return for managing their superannuation savings. At the time of writing, some of its fees include:

• Investment fees, which vary from depending on the investment option. This reflects the fees and costs associated with the purchase/sale and ongoing management of investments of the fund and underlying investment vehicles, Australian Ethical says.
• Administration fees of $97 per year, plus an asset-based administration fee of 0.29% of your account balance each year. The asset-based fee is tiered and reduces on the portion of your balance over $250,000, on a sliding scale. Refer to their website for further information
• Insurance fees, if you have insurance cover through your super. The cost will depend on the level and amount of cover you have, your age, and the type of work you do.

Bear in mind that other fees may apply. Consider checking Australian Ethical’s PDS for details. You can also compare the annual fees for Australian Ethical’s Balanced investment option to other super funds’ fees on Canstar’s database.

To help you stay on top of your super, it may be beneficial to check your regular super statement closely. Here are some of the factors that could be worth paying attention to:

• Are your personal details up-to-date?
• Are your nominated beneficiaries up-to-date?
• Are the super contributions from your employer and/or your voluntary contributions correct?
• Are your investment asset class choices appropriate for your life stage?
• Are you happy with the amount you’re paying in fees?
• Is your insurance still adequate for your needs?
• Have you decided whether to consolidate your super, after checking whether there is insurance or any other benefits attached to the account you may lose and if you’re comfortable to do so?
• The big picture – are you happy with your super fund overall?

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Australian Ethical is a pioneer in ethical investing in Australia. Their website states that they do not invest in fossil fuel companies, nuclear power or weapons companies, tobacco companies and a wide range of other industries that they consider are against “the good of us and our planet”.

They also offer a retirement/pension product, and managed funds for investment outside of superannuation.