SIGNIFICANT EVENT NOTICE
Changes to the Advocacy option from 1 October 2021
From 1 October 2021 the Advocacy option, along with other changes, will be known as the High Growth option. You can find a copy of the communication sent to existing members here.
One of the key changes is that the option will now be invested in additional asset classes including unlisted property and alternative assets. See below for further details on what these include:
Unlisted property assets
Unlisted property holdings are investments in property assets. The unlisted property asset class is included in the fund’s portfolio for its income and growth characteristics, in addition to providing diversification benefits.
Alternative assets
Alternative assets cover a wide range of investments that are not considered traditional assets. Some examples include Private Equity, Venture Capital and Infrastructure. These types of investments provide diversification because they aren’t strongly correlated with the performance of traditional assets.
Our advocacy work continues
The Advocacy Fund is changing but rest assured that our advocacy work isn’t. Australian Ethical continues to find opportunities to advocate for change with companies that we invest in, ones that don’t meet our Ethical Charter that we hold nominal holdings for, and companies we don’t invest in.
We also engage with government on policy issues relating to climate and biodiversity, human rights and animal protection. You can see examples of our recent advocacy work here.
Further details on changes to the fund
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Current Disclosure |
New Disclosure |
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Investment fee |
1.20% |
0.99% |
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Investment option name |
Advocacy option |
High Growth option |
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Investment return objective |
To provide long term growth accompanied by high levels of risk through investment in listed companies on Australian and international stock exchanges |
It aims to achieve returns of 4.5% p.a. above inflation (after investment fees and indirect costs) over the long term.
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Recommended minimum timeframe |
7 years |
10 years |
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Mix of asset classes and strategic ranges |
Current Disclosure |
New Disclosure |
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Asset class |
SAA |
Ranges |
SAA |
Ranges |
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Australian and New Zealand Shares |
70% |
55% – 85% |
45% |
40% – 60% |
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International Shares |
25% |
10% – 40% |
35% |
20% – 60% |
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Cash |
5% |
0% – 15% |
5% |
0% – 10% |
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Alternatives |
N/A |
N/A |
10% |
0% – 20% |
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Property |
N/A |
N/A |
5% |
0% – 20% |