Australian Ethical Super | Performance, features and fees

Australian Ethical Super Balanced
Australian Ethical Super Balanced

A super fund that invests in ethical companies that have a positive impact on the planet.

Australian Ethical Super is a superannuation fund that invests in ethical companies. This means the fund invests in industries like waste management, clean energy, responsible banking and healthcare while avoiding companies involved with tobacco and weapon manufacturing. The fund offers members seven different investment options to choose from, and includes automatic Death and Total Permanent Disability (TPD) insurance cover when you join.

Name Australian Ethical Super Balanced
Past 5 year performance 6.29%
Annual admin fee
$97 + 0.41% of balance p.a.
Calculated fees on 50K $662
Insurance included Death, TPD, Income Protection
Number of members 42,000

What are the key features of Australian Ethical Super?

  • Ethical investments. Investments are focused on sustainability, clean energy, waste management and recycling, health and responsible banking. The fund avoids investments in coal seam gas, weapons and tobacco.
  • Choose from seven pre-mixed funds. Members can choose from seven ready-made diversified investment options with different levels of risk.
  • MySuper product available. The default, low-fee MySuper option is the Balanced fund.
  • Automatic insurance cover. You'll receive the default Death and TPD cover when you join the fund, and you can choose increase your cover or opt out at any time.
  • Consolidate your super online. You can easily consolidate your existing super balance into your Australian Ethical Super account by completing an online form.

What investment options are available with Australian Ethical Super?

Australian Ethical Super offers members a choice between seven pre-mixed diversified investment funds. Which one you choose will depend on how you want your money invested and also the level of risk you want to take. Although each option invests differently, each option has a focus on ethical investments.

If you don't make a choice, of don't want to choose, you'll be placed in the Balanced options which is Ethical Super's default MySuper product.

Investment fund Risk level Past 5 year performance (average p.a.) *Target asset allocation
DefensiveVery low1.3%
  • Cash: 90-100%
  • Fixed interest: 0-10%
ConservativeLow to medium3.6%
  • Cash: 0-30%
  • Interest-bearing investments: 20-80%
  • Property: 0-15%
  • Australian and New Zealand shares: 0-20%
  • International shares: 0-20%
  • Alternatives: 0-15%
BalancedMedium to high6.29%
  • Cash: 0-20%
  • Interest-bearing investments: 0-30%
  • Property: 0-20%
  • Australian and New Zealand shares: 10-50%
  • International shares: 5-40%
  • Alternatives: 0-20%
Growth High6.7%
  • Cash: 0-20%
  • Interest-bearing investments: 0-25%
  • Property: 0-20%
  • Australian and New Zealand shares: 15-55%
  • International shares: 10-50%
  • Alternatives: 0-20%
Smaller companies High10.3%
  • Cash: 0-20%
  • Australian and New Zealand shares: 80-100%
International shares High6.5%
  • Cash: 0-15%
  • International shares: 85-00%
Advocacy High7.5%
  • Cash: 0-15%
  • Australian and New Zealand shares: 55-85%
  • International shares: 10-40

*Past performance figures correct as of December 2018. Past performance is not a reliable indicator of future performance.

What insurance cover is available with Australian Ethical Super?

You'll receive basic levels of the following default insurance cover when you join Australian Ethical Super, without the need to complete any forms or do any medical tests.

  • Death cover: This provides a lump sum payment if you die or are diagnosed with a terminal illness.
  • TPD cover: This cover provides a lump sum payment if you become disabled and are unable to work.

The default level of cover costs $3.69 per week, and the level of cover you get will depend on your age and your occupation. You can choose to increase your level of cover if you feel you need more than the default level, or you can also opt out of insurance all together at any time.

What fees does Australian Ethical Super charge?

You'll be charged ongoing fees for the administration of your account plus investment management. Here's an example of the annual fees you'd pay if you had $50,000 in the Balanced fund.

Example of fees paid on $50,000 in Balanced fund

Admin fees: $97 plus 0.41% of account balance per year.

Indirect cost ratio including investment fees: 0.72% of balance per year.

Annual fees on $50,000 balance: $662

The admin fee is the same no matter which investment option you go with, however the investment fees and the indirect cost ratio do vary slightly between each fund.

How do I join Australian Ethical Super?

You can become a member of Australian Ethical Super by filling out the online application form on its site. The process will only take about 15-20 minutes to complete if you have a few things on hand before you begin.

You'll need to provide:

  • Your full name, date of birth and gender
  • Your Australian residential address
  • Your phone number and email address
  • Your tax file number (TFN)
  • Your chosen investment option and insurance cover
  • Details of your current super fund (if you have one that you want to roll over into your new fund)

Once this is done and Australian Ethical Super has successfully verified your identity online, you'll be sent the details of your new account. If you'd like your employer to make your compulsory super payments into this fund, make sure to give your employer your Australian Ethical Super account details.

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