Balanced Index applies Future Super’s investment screening to a balanced portfolio designed to have lower fees than the other investment options available within the fund. Future Super’s screening excludes fossil fuel investments, with a 0% threshold for direct exposure to any revenue generated by owning fossil fuel reserves and/or from the mining, extraction or burning of fossil fuels. 

The screening applied to the Balanced Index portfolio also excludes companies with any direct revenue generated from gambling, nuclear energy, tobacco, weapons, animal cruelty (such as live export), pornography, predatory lending, production or manufacturing of controversial chemicals and mandatory detention of asylum seekers or for-profit prisons. Where a company has an indirect revenue exposure to one of these screens that company must earn less than 5% of its revenue from that screened activity to still be eligible for investment. 

Companies with all male board members are screened out. So are companies found to engage in activities which have a direct negative impact on recognised UNESCO World Heritage or High Conservation Value areas. Any evidence of direct, repeated and systemic labour rights violations - including child labour, forced labour, sweatshops and causing harm to communities without redress - will also result in companies being screened out. 

Some of the more nuanced screening applied to the portfolio includes: companies that gain revenue from the production of alcohol must earn less than 5% of total revenue from alcohol; companies that indirectly have exposure to sales and distribution of alcohol must earn less than 20% of revenue from this activity; and companies involved in the sale of foods determined to have low nutritional value or possessing addictive properties such as through high sugar content or additives must earn less than 33% of revenue from those products. 

Balanced Index is positively screened to gain exposure to Carbon Leaders. Carbon Leaders are considered to be companies that have a carbon efficiency that places them in the top one-third of companies in their industry or are otherwise superior performers in relation to avoided emissions. It’s also positively screened for Green Bonds, bonds issued to fund projects that have positive environmental and/or climate benefits, and Sustainability Leaders, companies which have activities deemed to be inline with the UN Sustainable Development Goals. 

Find more information about Future Super’s screening policies here. Read more about why we have these screens in place here.