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Page 180

Money

How tobe super ethical E D I T E D by GENEVIEVE GANNON

The growth in ethical super funds means it’s easier than ever to do good while saving for retirement.

Is ethical investment riskier?

There has long been scepticism around ethical investing, Effie says. “There always was a fear from a consumer perspective, is there a trade off? Do I get less return? That’s definitely

not the case. When you look at the past performance of ethical super funds they’ve done really well.” Part of what shocked Dr King when she learned she was investing in tobacco was that it seemed like bad business. “Declining returns and growing business threats present a clear and present financial risk for investors in tobacco,” she says. Ethical investment is normally directed towards sectors with longterm growth, Effie says. “Renewable options, that’s a growth sector so they’ve got long-term growth prospects.”

Where is your money?

Start by looking at your product disclosure statement. Even if you have an “ethical” fund, it’s worth taking the time to understand what you’re actually investing in. “Ethical” has unfortunately become a bit of a buzzword in the financial sector, Effie explains. “Some of the unethical investments that are screened out are fossil fuels, weapons, tobacco and logging. But is animal cruelty? You’ve got to actually see where they’re investing and where they’re not.” Your fund manager should be able to provide you with a breakdown of the companies your fund is currently

178 The Australian Women’s Weekly | FEBRUARY 2020

investing in. The Responsible Investment Association Australasia provides a wealth of information about navigating this complex area.

Look before you leap

You can then speak to your fund manager about what options they have. They may be able to offer you an ethical option. Yet if your fund has one “ethical” option but maintains holdings in areas that are not meeting your ethical standards, you may want to consider looking elsewhere, Effie says. She cautions again being rash. “Don’t rush straight out of your super fund because there are so many things attached to it. You may be on a very lucrative insurance policy. There may be exit fees,” Effie says. “Get some expert advice before you run.” One thing she does advise is letting the fund know why you’re leaving. “Ethical investment has been around for a long time but it’s gaining momentum because people are starting to realise that if the government’s not going to fix these issues we as investors can, and that’s a very powerful thing.” AWW

GETTY IMAGES. ALWAYS CONSIDER YOUR PERSONAL CIRCUMSTANCES BEFORE ACTING ON FINANCIAL ADVICE.

O

ncologist Bronwyn King always wanted to save lives, but she never expected the best way to do so would come from examining her finances. When she discovered the default setting on her superannuation fund meant she was supporting the production of cigarettes, she was horrified. She now heads Tobacco Free Portfolios, a company that has driven a significant reduction in investment in cigarettes. But tobacco isn’t the only questionable product super funds invest in, she says. Weapons, slavery, pornography and logging are just some of the industries Australians may be supporting without realising it. Canstar Editor-at-Large Effie Zahos says there is a growing appetite for ethical investment but most people don’t know where to start. Legislation that requires super funds to make their investments more transparent has been deferred until the end of next year, so we spoke to experts about what you can do to ensure your hard-earned salary is not supporting industries you ethically oppose.


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MONEY: making

7min
pages 180-182

HOME HINTS

2min
page 171

READING ROOM

14min
pages 175-179

HOMES: renovating a

4min
pages 166-170

QUICK BITES

2min
pages 164-165

SWEET SENSATION

6min
pages 160-163

FOUR WAYS

1min
pages 158-159

PICK YOUR PROTEIN

4min
pages 138-141

FIRE UP THE

7min
pages 152-157

HEALTH NEWS

5min
pages 132-136

PICK OF THE

3min
pages 148-151

COOK, FREEZE, EAT

10min
pages 142-147

ASK THE DOCTOR

2min
page 131

BEAUTY: the new

5min
pages 120-122

WORKSHOP: fashion

2min
pages 116-119

BREATHE EASY: keep

5min
pages 128-130

PAT McDERMOTT

3min
pages 106-107

NOISE WORKS: the

7min
pages 102-105

MY STORY: Teresa

7min
pages 100-101

BREAKING DOWN

11min
pages 94-99

WE ARE FAMILY

11min
pages 80-85

HUMOUR: Amanda

2min
pages 92-93

ME AND JACKIE O

13min
pages 86-91

THRONE OF CHAOS

11min
pages 74-79

KRISTIN SCOTT

12min
pages 68-73

TRUE CRIME: the Black

13min
pages 46-51

BRAVE CRUSADER

13min
pages 62-67

I’M HONOURING

16min
pages 32-39

IN THE NEWS

1min
pages 14-15

FIREPROOFING OUR

3min
pages 30-31

THE SPIRIT OF

27min
pages 16-29

OPEN LINE: your letters

1min
page 13

EDITOR’S LETTER: from

8min
pages 7-12
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