Social Portfolio
A growth-focused portfolio that incorporates ESG and responsible-investment considerations.
AT A GLANCE
The Social Portfolio is designed for investors seeking long-term capital growth who also want environmental, social and governance (ESG) considerations incorporated into portfolio construction. It invests through diversified ASX-listed funds from the approved investment universe that apply identifiable ESG, responsible-investment or sustainability-related criteria.
How is ESG used?
There is no single definition of ESG investing. Different underlying investments may use different approaches, such as excluding or reducing exposure to specified activities, selecting companies using ESG criteria, applying sustainability-related criteria, or targeting particular sustainability themes. The criteria, thresholds and portfolio outcomes can differ between providers.
IMPORTANT TO UNDERSTAND
The Social Portfolio does not apply one universal ethical screen across every investment. An activity excluded by one underlying investment may not be excluded by another, and ESG considerations do not mean that every company in the portfolio will meet every investor’s personal values. We are limited by the scope of Funds available and in places must accept a lower level of screening than in other investment options.
Who may consider this portfolio?
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Investors with a long-term investment horizon, generally 5 to 7 years or more.
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Investors seeking capital growth and who are comfortable with a high level of investment risk and market volatility.
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Investors who want ESG or responsible-investment considerations incorporated into portfolio construction, while retaining a diversified investment approach.
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Investors who understand that ESG screens and selection methods can cause the portfolio to perform differently from broad market indices and can create sector, style or geographic biases.
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Investors who accept that ESG methodologies differ between investment providers and may change over time.
When may it not be appropriate
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If you need capital stability or expect to use your money in the short term.
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If you are uncomfortable with substantial falls in portfolio value during weak markets.
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If you require a portfolio to exclude a specific industry, company or activity in all circumstances.
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If you expect the portfolio to deliver a measurable environmental or social impact, or to guarantee particular sustainability outcomes.
Key Risks
THE KEY QUESTION
The Social Portfolio may be relevant if you want ESG considerations to form part of how your money is invested, but you remain focused on long-term capital growth and accept the risks and limitations that come with both share market investing and ESG-based portfolio construction.
General information only.
This information is general in nature and does not take into account your objectives, personal financial situation or needs. It is important to remember that investment values and returns can rise or fall, and you may lose money. Past performance is not a reliable indicator of future performance, and returns are not guaranteed. Consider the relevant disclosure material before investing.