February 19, 2021
Mercy Super established the Socially Responsible investment option in December 2007. This option was designed to provide members access to a balanced portfolio of investments within a responsible framework considering the environmental, social and ethical factors of underlying assets. To support this framework, member balances were wholly allocated to the AMP Capital Ethical Leaders Balanced Fund.
In recent times, there have been a number of issues surrounding the management of this fund which have raised concerns over the ability of the AMP Capital Ethical Leaders Balanced Fund to continue to deliver on its initial goals.
We have therefore determined that it is in the members’ best interests to redeem the AMP Capital Ethical Leaders Balanced Fund investment as soon as possible and investigate other investment opportunities for the Socially Responsible option. This action was initiated on 15 February 2021 with interim arrangements for the investment of assets held within this investment option while the Trustee investigates appropriate alternative arrangements over the coming months.
As an interim measure, the assets within the Socially Responsible option have been invested in existing investments with the same strategic asset allocation as Mercy Super’s MySuper Balanced option. This was chosen as it is an existing investment strategy that closely matches the risk and return objectives and strategic asset allocation of the Socially Responsible option. From 16 February 2021 all future cashflow to the Socially Responsible option (contributions, transfers and any payments) will also be directed to an asset allocation aligned to the MySuper Balanced option.
This is intended to only be a temporary arrangement until we can research and implement a suitable structure including appropriate investment managers for the long-term support of the Socially Responsible option. This could take several months.
You will continue to have the flexibility to choose from any of the other investment options within Mercy Super with no buy/sell or transaction costs if you decide to switch your investment out of the Socially Responsible option. You can do this through Member Online or using the Changing your investment options form.
The Trustee is currently researching a range of alternative investment managers and structures to support the long-term goals of the Socially Responsible option. We’ll let you know once this is in place and the details behind the restructured option.