MONEY: making

Money

How to be super ethical

EDITED by GENEVIEVE GANNON

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

Oncologist 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.

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

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

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

Promotion

Behind closed doors

With one in six women reporting signs of financial abuse, it’s important to recognise the signs for yourself or someone close to you.

Money can be a sensitive topic for many of us, particularly if you are in a situation where you’re not in control of your fi nances. Whether it’s limited access to cash or constant scrutiny of spending, a fi nancially abusive relationship can take many forms. According to Jan Breckenridge, Associate Professor at the University of New South Wales’ Gendered Violence Research Network, fi nancial abuse can occur without physical violence and can be overt or incredibly subtle. However, regardless of the method, the planned outcome for the perpetrator is always the same –control. “There are three key ways money is used to abuse a partner: fi nancial control, fi nancial exploitation or sabotage of work or study which limits economic opportunities. A perpetrator might withhold money, track the other person’s spending online, block access to their own accounts or create debts in the victim’s name,” Breckenridge explains. “We see so many forms of control –maybe they’ve changed a password on an account and have withheld details of the new password. People can be asked to work in the family business with no pay or asked to do chores at home in return for money.” For many, lack of fi nancial autonomy is what keeps them in a situation that they might otherwise leave. “Through my research it’s been clear how economic abuse can create a situation where often women have to leave relationships with nothing.”

“Financial literacy is one important area that can help everyone spot the warning signs of abuse – either for themselves or for someone close to them. It’s not necessarily about looking for it, but if there are signs of fi nancial stress, sometimes it’s an indicator that something is not okay.” Financial abuse can impact all types of relationships, age groups, cultures and extended family dynamics. Commonwealth Bank Group Executive Sian Lewis says, “Many Australians know domestic and family violence is an urgent issue but less are aware of how closely it’s linked to fi nancial abuse. “Financial abuse is a hidden epidemic with research telling us it is prevalent in about 90 per cent of domestic and family violence situations. As one of Australia’s largest banks, we have a responsibility to do what we can to address this disturbing issue. “Over the past fi ve years, we’ve committed $30 million to programs that have helped people affected by domestic and family violence, offering support to vulnerable customers when they need it most. “But we know there is more to be done. That’s why we’re investing in and partnering with a range of leading community organisations, academics, survivors and advocates to develop new fi nancial solutions and support to help those affected achieve long-term fi nancial independence.”

Find out more about fi nancial abuse by visiting commbank.com.au/ fi nancialabuse

WHAT ARE THE FINANCIAL ABUSE WARNING SIGNS? 1. You are prevented from contributing to household income by getting a job or earning income. 2. Your partner controls how all of the household income is spent. 3. You have been forced or pressured to take out a loan or credit card in your name. 4. You have to ask for money for basic expenses. 5. Your partner monitors what you spend and ex pects to see receipts.

Promotion

Best Buys

Go window shopping without leaving your home with this great selection of products.

A MUST READ The remarkable life of L ady in Waiting to Princess Margaret and a Maid of Honour at the Queen’s Coronation – and is a character in The Crown this spring. RRP $32.99. Visit hachette.com.au QUEEN OF HEARTS KitchenAid 100 Year Queen of Hearts S tand Mixer in Passion Red features variable spin s peed s, a straightforward design and a handy attachment hub. Ideal for the most p assionate of coo ks. RRP $1,099. Visit harveynorman.com.au FOR THE HIPPEST OF KIDS This adorable HipKids classic 12-inch bike c omes with training wheels to make learning to ride even easier. While your little one will love carting around their favourite toy or drink bottle in the wicker basket. RRP $159.95. Visit hipkids.com.au

LOVE STORIES F rom the National Portrait Gallery London comes an exhibition featuring portraits of the greatest loves stories from the 16th century until today. National Portrait Gallery, Canberra. Exclusive season: June 20 – September 27. RRP $25. Book now at portrait.gov.au

EXPRESS YOURSELF WITHOUT WRINKLES New WRINKLE BLOCK blocks visible expression wrinkles up to 78% in 30 minu tes, delivering a near 40% wrinkle and 76% eye bag reduction in 7 days. Two powerful peptides simultaneously slow down expressions while charging skin to bounce back. RRP $69.00. Visit freeze-frame.com.au GOODBYE BRUISES! Hirudoid Cream is especially for bruises, sprains and swelling due to accidental or surgical injury.

Always read the label. Follow the directions for use. If symptoms persist, talk to your health professional. CHPAUS 30781-1119D

WANT TO TIGHTEN SKIN? Rosken Biomexa™ Probiotic Moisturiser is an intensive moisturiser enriched with Probiotics and Colloidal Oatmeal to help soothe and protect very dry and itchy skin. Available at Chemist Warehouse, $10.90. Visit chemistwarehouse.com.au