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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

 

Current Disclosure
New Disclosure

Investment fee

1.20%

0.99%

Investment option name

Advocacy option

High Growth option

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.

 

Recommended minimum timeframe

7 years

10 years

Mix of asset classes and strategic ranges
Current Disclosure
New Disclosure

Asset class

SAA

Ranges

SAA

Ranges

Australian and New Zealand Shares

70%

55% – 85%

45%

40% – 60%

International Shares

25%

10% – 40%

35%

20% – 60%

Cash

5%

0% – 15%

5%

0% – 10%

Alternatives

N/A

N/A

10%

0% – 20%

Property

N/A

N/A

5%

0% – 20%