Ethical Superannuation and Banking/Divestment Recommendations

kanmen on 28/06/2020 - 16:53

I've been wanting to change my super and banking to more ethical and sustainable lines of investment for quite some time, but I don't really know where to look.

I keep getting ads for Future Super on my Facebook, but I know there are others such as Australian Ethical Super. Does anyone have any tips or recommendations for funds? Can anyone point me to where I can find information about where each super fund invests their money? Are they things that are disclosed in annual reports? I am wanting to also be conscious of investments in tobacco, gambling, and companies with bad labour hire and other practices.

Here are some resources I've found so far for people also considering:
The Guardian Article on what Ethical Superannuation is
Market Forces site

Similarly, this is Market Forces analysis of banks that do not invest in fossil fuels. Any recommendations on any of these smaller banks?

PS: Not looking to have a discussion on ethics of investing, so no judgement pleaseee.

Financial

Comments

  • bluesky on 28/06/2020 - 17:18

    Have a look at this past thread in case there is anything of interest to you there.

    • kanmen on 28/06/2020 - 17:29
      +1

      Thank you! I missed this one, I saw one from a few years back but didn't see this one.

      • Gekov on 29/06/2020 - 10:29
        -4

        If you're worried about NATURALLY rising atmospheric CO2 levels, please be aware that any reduction of human CO2 emissions is FUTILE!

        A 17% COVID19-induced reduction in global CO2 emissions has had no discernible effect on NATURALLYrising CO2 levels, which are determined by NATURAL temperature dependent processes such as warming ocean outgassing, rotting vegetation etc.

        If you think that's because of some lag, then a closer look at the Moana Loa CO2 chart reveals SEASONAL VARIATIONS shown as a ripple on the CO2 chart, so there is NO LAG in CO2 levels relative to emissions.

        RELATIVELY TINY human emissions (about 2.5% of total global emissions), have absolutely no effect on CO2 levels.

        You've been fooled by relentless global warming lies,
        propaganda & climate history revisionism.

        Gekov on 29/06/2020 - 10:29 (Collapsed - Offtopic. Show)
  • iand on 28/06/2020 - 17:51
    +1

    Ethical Superannuation and Banking 😁

  • DiLs on 28/06/2020 - 17:52
    -1

    Crescent wealth https://crescentwealth.com.au/islamic-super/
    Hejaz https://www.hejazfs.com.au/

  • [Deactivated] on 28/06/2020 - 18:01

    What do you define as ethical should be the first question and answer as we are all different. You could just do a self managed fund.

    • iand on 28/06/2020 - 18:42

      So true just look at some tribes of people in the world where it is/was a moral and ethical obligation to eat you enemies if they have fought well

    • kanmen on 28/06/2020 - 22:33

      Mostly what I've mentioned in my post in terms of gambling and tobacco, fossil fuel companies etc. TBH I don't yet see myself as financially savvy enough to have a SMSF.

      From what I can see there are some funds that invest in specific industries such as health, education etc. So it may be a question of what I want my money invested in, rather than what I don't want it invested in maybe?

  • wallet72 on 28/06/2020 - 18:05
    +2

    Have a look at Spaceship (www.spaceship.com.au), I used to work there and I think they have a good investment strategy.

  • [Deactivated] on 28/06/2020 - 18:14

    Unless its an industry superfund, more than likely some backyard fund

  • CecilTheChair on 28/06/2020 - 18:24
    +2

    Some of the funds have specific ethical options. Not sure if this quite covers your request but maybe worth looking into. The super company I use doesn’t have its own option but the they offer an ethics investment option through AMP, I assume other super funds would do similar also.

    Edit - I think this is it https://www.ampcapital.com/au/en/investments/funds/ethical-i…

  • Tatt5 on 28/06/2020 - 19:54
    +1

    Check out friendlyjordies on YouTube he just did a recent video. He recommends bank Australia and either future super or Australian ethical. When I did research before switching I also found local government super as a candidate but ended up with Australian ethical.

    • suti on 28/06/2020 - 20:46
      +1

      Australian Ethical is a bit of a scam 'ethical' company.

      The 4th largest holding in its australian share fund is Westpac, despite Westpac allegedly knowing that its "customers were using its accounts and money transfer services to pay for child pornography going as far back as 2013" according to Austrac. It also continues to be a large lender to the fossil fuel industry.

      https://www.australianethical.com.au/personal/managed-funds/…

      more marketing and spin than anything.

      • kanmen on 28/06/2020 - 22:40

        Ugh that's annoying. May as well bank with Westpac then, right? I see they also invest in NAB.

        They get away with saying they don't invest in fossil fuels because they don't directly.

      • Tatt5 on 29/06/2020 - 10:58

        Thanks, this is actually making me reconsider.

        • ageotas on 29/06/2020 - 16:24
          +1

          To be fair to Australian Ethical (and yes, I am currently a customer of theirs) they have released extensive documentation and rationale behind their investment choices in Westpac, the summary of which is here:
          https://www.australianethical.com.au/blog/why-do-we-invest-i…

          They have ongoing review processes for all their investment to ensure that if standards are slipping (or not progressing fast/far enough) then they will (and have) actively divest.

          As for ethical banks, a big fan of Bank Australia who also release regular progress statements about how they are operating and where they are investing their (your) money.

          • kanmen on 29/06/2020 - 23:06
            +1

            @ageotas: Some of their options have more secure loan types that seem to be in government bonds etc. so I guess there are options within Australian Ethical that avoid investments such as the one in question, but that explanation makes sense.

            Have the both of you had good experiences elsewise? What's their service like? Can you access your account easily?

            • ageotas on 30/06/2020 - 10:45

              @kanmen: No complaints and great customer service over the last two/three years.

              Also, one of very few supers to actually return a positive index over Covid, which is no small thing!

              The web portal is super easy to use, and yes you can change your investment profiles quickly and easily if you want to ensure your money isn't being used anywhere you are uncomfortable.

              It is also worth looking at their annual reports, which outline the advocacy and positive investment projects they pursue.
              https://www.australianethical.com.au/shareholder/annual-and-…

              (And echoing other commenters elsewhere in this thread, I am also with Bank Australia and couldn't be happier with them too!)

    • kanmen on 28/06/2020 - 22:41

      Not sure I'd expect to see a Karen trying to take up ethical investing but okay sure!

  • Baysew on 28/06/2020 - 21:27

    I don't have any accounts with these guys, but they seem like what you are looking for in a bank.

    Bank Australia is an Australian customer owned bank. Its stated purpose is to create mutual prosperity in the form of positive economic, social, environmental and cultural impact

    • kanmen on 28/06/2020 - 22:43

      Yess! I've heard good things about them! I guess I also want to know what it's like banking with a smaller bank, given I've only ever been with a big 4 with lots of ATMs and branches?

  • Bunnyburger on 28/06/2020 - 21:46

    Anything actively managed will drain you dry with their fees, actively managed funds rarely manage to beat passively managed indexes let alone make up for their annual fees.

  • Trying2SaveABuck on 28/06/2020 - 22:52

    HESTA is health care industry based i think

  • Ashbargin on 29/06/2020 - 08:52

    "Ethical" funds apply one or both filters. Ie positive filters will specifically look for companies that do "positive" things for the world. ie renewable, certain lending etc etc or a negative filter which will filters out companies like weapons, tobacco etc. Which filter is most important to you?

    • kanmen on 29/06/2020 - 23:08

      Yes I've just realised that in seeing that certain funds invest in certain industries.

      Honestly I think I'm looking for both but a negative filter is the bare minimum requirement for me so that would be most important.

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