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Socially Responsible Investment – Balanced option

We recognise that there are many challenges facing the world today.

That’s why we offer a Socially Responsible Investment (SRI) option that aims to address these challenges.

It seeks to exclude particular industries and invest in assets that contribute to sustainable outcomes.

All while earning sustainable returns for your future.

Here’s how it works.

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Invest in the Socially Responsible Investment – Balanced option

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When you invest in Hostplus’ Socially Responsible Investment - Balanced option, you can be confident that your super is not invested in fossil fuel companies or any of the following:

Fossil Fuel
Fossil fuels
Human Rights
Human rights and
labour rights breaches
Very Poor ESG
Very poor ESG
policies and systems
Controversial
Controversial weapons
Palm Oil
Uncertified palm oil
Predatory Lending
Predatory lending
Immigration
For-profit detention
(prisons and immigration detention)
Gambling
Gambling
Tobacco
Tobacco production
Live animal export
Live animal export

You can learn more about the industries and companies that our Socially Responsible Investment - Balanced option avoids here.

Sustainable Development GoalsThrough our Socially Responsible Investment - Balanced option, your money is invested in companies and assets that contribute towards achieving the United Nations’ Sustainable Development Goals (SDGs).

These include companies that are developing solutions to tackle climate change and other environmental and social challenges.

Renewable energy
Renewable energy
Green buildings
Green buildings
Healthcare
Healthcare and
medical solutions
Clean water
Clean water
Community Infrastructure
Community
infrastructure
Alternative Foods
Alternative foods
Green bonds
Green bonds

The Socially Responsible Investment - Balanced option invests in unlisted assets (such as private equity and venture capital) as well as listed investments.

And because Hostplus is one of the largest Australian investors in venture capital, this means that you are invested in companies that are developing tomorrow’s solutions to today’s challenges.  

See our portfolio here

Importantly, investing sustainably shouldn’t cost you more. With Hostplus’ Socially Responsible Investment – Balanced option, it doesn’t.

The option’s underlying investment costs are lower than our default MySuper option.1 And as a Hostplus member, you pay the same low cost administration fee of $1.50 per week, regardless of which investment option you choose.2

The option invests through a diversified portfolio, including some growth assets and some lower risk investments. It targets a return of 3.5% above inflation, over a 20 year time frame (for accumulation members).

Porfolio

1As at 30 June 2020. Investment costs can change regularly. Please visit https://hostplus.com.au/super/what-you-need-to-know-about-super/fees for the latest fees and costs breakdown.
2The administration fee is paid in addition to the underlying investment costs. The admin fee is $1.50 per week for accumulation members and $4.50 per week for pension members.

Choose to invest as little or as much of your super in the Socially Responsible Investment - Balanced option as you like.

You can switch between Hostplus’ investment options for free and can invest your super in multiple options at the same time.

Our policy keeps us on track

As well as offering a Socially Responsible Investment - Balanced option, Hostplus is committed to responsible investment across all our investment activities.

Our Responsible Investment Policy is an important part of our investment approach as a Fund. It’s how we manage risk and optimise our members’ retirement outcomes.

  • Fossil fuels: Companies that own reserves, explore, mine, extract, produce, refine or generate energy from fossil fuels as well as those companies that receive revenue from servicing these sectors through equipment services, pipeline transport or distribution. A zero-materiality threshold is applied, but dedicated renewable energy generators with backup fossil fuel sources (<5%) may remain investible. Data is supplied by MSCI and Institutional Shareholder Services (ISS) Inc.
  • Human rights or labour rights breaches: Companies that breach the United Nations (UN) Global Compact or International Labour Organisation’s (ILO) Core Conventions. Data is supplied by MSCI.
  • Very poor ESG policies and systems: Companies with an MSCI ESG rating of B or CCC.
  • Controversial weapons: Companies involved in the development, production, maintenance or sale of controversial weapons (including cluster munitions, anti-personnel mines, depleted uranium, biological weapons, chemical weapons, blinding laser weapons, non-detectable fragment weapons and incendiary weapons). Involvement includes companies directly involved as well as prime-contractors, key sub-contractors, and suppliers of key components. Data is supplied by ISS.
  • Uncertified palm oil: Companies involved in growing, processing or using palm oil, that derive >10% of their revenue from these activities and where <50% of the palm oil is Roundtable on Sustainable Palm Oil (RSPCO) Certified. Data is supplied by ISS.
  • Predatory lending: Companies involved in predatory lending, including unfair or deceptive products, excessive interest rates, misleading marketing, inclusion of unnecessary costs and hidden fees and those targeting minority, low income or elderly consumers. Data is supplied by ISS.
  • For-profit detention: Companies deriving >5% of their revenue from for-profit detention, e.g. prisons and immigration detention. Data is supplied by ISS.
  • Gambling: Companies deriving >5% of their revenue from gambling. Data is supplied by MSCI.
  • Tobacco: Companies involved in tobacco production. Data is supplied by MSCI.
  • Live animal export: Companies involved in the export of live animals for the purpose of slaughter, husbandry and breeding, including specialized transportation. Data is supplied by ISS.

To refresh our Socially Responsible Investment – Balanced option, we’ve partnered with specialist external investment managers and sourced sustainable investment data from external providers.

The following describes the option’s approach to each asset class in further detail:

  • Australian and International Shares – invested in listed Australian and International (developed market) share portfolios via an investment manager. The manager excludes the investments described above then seeks to maximise the Sustainable Development Goal (SDG) score of the portfolio. 3
  • Property – invested in diversified property funds that have been identified as leaders (at the overall, regional and/or strategy level) by their Global Real Estate Sustainability Benchmark (GRESB) score and ranking. Hostplus applies exclusions as described above when selecting funds for the option.
  • Infrastructure – invested in infrastructure assets including renewable energy, water utilities and social infrastructure. Hostplus applies exclusions as described above when selecting assets for the option.
  • Private Equity – invested in a diversified mix of funds that have been identified as including companies that contribute toward achieving one or more SDG and/or are managed by an investment manager that has stronger-than-average responsible investment processes relative to peers within the same asset class. Hostplus applies exclusions as described above when selecting funds for the option (this involves avoiding funds that have exposure to one or more of the excluded industries or that adopt a fund-of-fund or secondaries structure).
  • Diversified Fixed Interest – invested in passively managed Australian and Global Bond ESG funds whose processes most closely match the exclusions described above. The investment manager applies rules-based exclusions to non-government securities associated with fossil fuels, alcohol, tobacco, gambling, adult entertainment, genetically modified organisms, military weapons, civilian firearms and nuclear power, and for the global bond fund, treasury and government-related issuers with an MSCI ESG government rating below “BB”.4
  • Cash – invested in cash products that are managed by investment managers with responsible investment processes. Hostplus applies exclusions as described above when selecting products for inclusion in the option.

3SDG Solution Overall Score. Data is supplied by ISS
4Definitions for exclusions are based on the Bloomberg Barclays Index exclusion methodology

Learn more

 

Read our Product Disclosure Statement for more information about the Socially Responsible Investment - Balanced option and other Hostplus investment options.

If you can’t find what you’re looking for, please ask us here.