Answer: It certainly does make good financial sense to put all your super into one fund. For many people, a new job means a new super fund and over the course of a career it’s not unusual to find small amounts spread over several different funds. Each of these funds is charging its own set of administration and investment fees, so over time the nest egg is being eaten away instead of growing.

 

Consolidating all those separate super accounts into one means you pay only one set of fees. It also cuts out a pile of separate statements and the hassle of trying to manage multiple funds, making it much easier to keep track of your super.

 

To roll all your super into one fund you need to complete a transfer form, available from the fund you want to transfer into. AustralianSuper’s Transfer your super form asks you to complete the details of your other funds, so that we can contact them to release your super to us and direct it into your AustralianSuper account.

 

To complete the transfer you also need to submit with your form certified proof of your identity. This is a government requirement introduced in 2007 to better protect super benefits.

 

For most people, organising certified proof of identity involves simply taking a photocopy of their driver’s licence or passport to a post office or police station and asking an officer to write or stamp on the copy.

 

For those without a licence or passport, other forms of identity can be certified. And for people who can’t get to a post office or police station, there are other people allowed to certify documents.

 

The Proof of identity guide attached to the Transfer your super form explains all the options, depending on your circumstances.

 

Filling out the transfer form and organising for documents to be certified does take a little legwork. But the benefits of making the transfer far outweigh the hassle.

 

Consolidating your super could save you a lot of money in fees going to multiple funds, and having all your super in one place gives you the peace of mind of knowing exactly where it is, how much there is and how it is growing for your retirement.

 

Note: Some funds may charge you an exit fee for transferring your account. You may wish to contact your old fund/s to determine whether any exit fees or penalties apply. You should also check with your old fund the effect or timing a transfer will have on termination of any death and disability insurance cover you may have with your old fund.

Answer: Sustainable investment – also known as socially responsible, ethical or green investment – is a relatively new style of investing that integrates personal and social values with sound financial management. It allows you to help build an environmentally and socially sustainable future while receiving steady investment returns in line with the investment option’s estimated level of risk and return. It generally favours corporate practices that promote environmental and consumer protection, human rights, and diversity.

 

How does it work?
A sustainable investment option invests in companies that are leaders in terms of their economic, environmental and social sustainability.
Investment managers select companies which can demonstrate that they:

• have a strategic focus on the sustainability of their business, including measuring impacts and setting targets for improvement
• accept responsibility for the environmental, social and economic impacts of their products and services
• work constructively with communities, governments and non-government organisations to achieve sustainable outcomes
• strive to lead their industry in the development of sustainable practices
• are transparent when reporting on their performance.

 

What does AustralianSuper offer?
AustralianSuper offers one PreMixed and two DIY Mix Investment options that are based wholly, or partly, on sustainable investment principles:

• Sustainable Balanced (PreMixed), which includes investments in shares, property, fixed interest and cash  
• Australian Sustainable Shares (DIY Mix)
• International Sustainable Shares (DIY Mix)

 

What’s new?
In response to the growing interest in sustainable investment, AustralianSuper reviewed its Australian Sustainable Share and Sustainable Balanced options. As a result, the screening criteria and process used to choose the underlying investments for both options is changing.

 

There will no longer be automatic ethical exclusions. In the past our investment manager excluded companies that it believed received a significant proportion of revenue (at least 5%) from the manufacture or sale of alcohol or tobacco, the operation of gaming facilities or the manufacture of gambling equipment, uranium extraction or the manufacture of weapons or armaments.

 

Instead, there will be a ‘best-of-sector’ approach, which looks for sector-leading performance against environmental, social, governance and sustainability criteria. This means companies are ranked within each industry sector, and the top 35% of each sector are selected as ‘best-of-sector’.

 

So, instead of excluding an entire industry, companies that can demonstrate superior performance against the various benchmarks within each sector are included. This acts as a positive incentive for companies to improve their performance and become more socially responsible.

 

When is this happening?
The change will take effect from Wednesday 13 January 2010.