RIAA promotes the idea of a 3 step process when looking at your superannuation fund:
Check, Challenge, Change.
Whether you’re a DIY private investor, self-employed, or an employee, you can check whether or not your super fund is invested in a way that matches your values and if it offers a responsible investment option. Find out if your superannuation fund takes ESG issues into account. A responsible investment super fund is one which offers investors an environmental or sustainable investment option into which you can invest some or all of your retirement savings.
Check
Ask if your super fund has an RI option. Find out more information about how RI super funds operate.
Challenge
If it doesn’t, challenge them and ask if they can introduce one.
Change
If they are unable to assist you, change your super to one who can! Find out how to invest in an RI super fund.
Responsible investment takes into consideration the company’s impact on society and the environment, as well as its labour and corporate governance stance as well as its current and long-term profit potential. Do you know what your money’s up to?
Because so many super funds now have responsible investment options, there’s a big chance that you may already belong to a fund which offers a suitable ethical or sustainability option, so you may want to explore that possibility first by checking with your employer or existing fund.
SUPER FUND INVESTMENT OPTIONS
There are three main types of super fund to choose from:
Managed Funds – These funds are open to the public. They are managed by financial institutions or fund managers;
Industry Funds – which were originally set up for employees of a particular industry but most now welcome anyone who is eligible for superannuation;
Master Trusts – These are platforms which will help you invest in a range of managed funds – like an investment supermarket for superannuation.
