Genuine or just green-washing? Our take on the rise of ethical superannuation in Australia.

1. Genuine or just green-washing? Our take on the rise
of ethical superannuation in Australia.
Reported by
SUPER?

2. A Pretty Neat Report // Ethical Super?
November 2016 // Page 2
THIS YEAR WE HAVE SPOKEN TO
OVER 10,000 PEOPLE UNDER THE
AGE OF 25 ON THEIR ASPIRATIONS
AND HOPES FOR THE FUTURE. THIS
GENERATION OF AUSTRALIANS
IS HIGHLY VALUE-DRIVEN AND
IT’S NO SURPRISE THAT THIS
AFFECTS THEIR BRAND CHOICES
IN FINANCIAL PRODUCTS.
Search interest in ethical superannuation funds has grown four-fold over the past
five years1
across all age groups with particular interest in the eastern capitals.
Investors are keen to buy ethical stocks and major financial management
funds are seeing strong search growth.
Ethical superannuation search interest over five years
While a large part of our wealth as a country is tied up in superannuation,
young fund members and their parents don’t have faith in their fund. 86% of fund
members expect to know where their funds are used while funds are historically
averse to showing where they invest.2
But what even constitutes ‘ethical investment’ is hard to ascertain,
even within the industry.
As a growing and volatile consumer market for brands
we thought it would be neat to take a look at ethical
super and what it means for the brands involved.
BUT IT’S PRETTY SIMPLE ISN’T IT?
100
75
50
25
Nov 2012 May 2016Nov 2016May 2013

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A Pretty Neat Report // Ethical Super?
ETHICAL
E T H I C A L
ethical
ETHICAL
ETHICAL
ETHICAL

4. A Pretty Neat Report // Ethical Super?
November 2016 // Page 4
A SERIES OF CONVERGING FORCES
HAVE DRIVEN DEMAND FOR
ETHICAL INVESTMENT INCLUDING
ENVIRONMENTAL AWARENESS,
GENERATIONAL (AND ATTITUDINAL)
SHIFT IN SUPER FUND MEMBERS
AND REGULATORY CONSTRAINTS
ON UNSUSTAINABLE BUSINESS
CATEGORIES.
Generations X and Y are more concerned about how your business operates
and where it invests its money.
With tighter constraints on historically profitable business, changing
consumer expectations and promising early returns from ‘responsible
investments’, a host of ethical super brands and products from established
providers have emerged in recent years.
But what is ethical superannuation? The industry peak body, leading consumer
groups and the media have drawn a blank on this. Is it a question of: “everyone
wants to invest ethically but nobody wants to lose money.”3
A loose definition
helps everybody except members.
While your fund may not invest in firearms, fossil fuels, tobacco or alcohol
how do you feel about Coles (pricing, gambling) GSK (animal testing, fraud) or
Nestle (worker’s rights, pollution etc)?
We’d like to propose a definition for ethical superannuation:
“Where 100% of managed funds are invested in business
that demonstrably and accountably shows socially
responsible practice.”
As a member, fund manager or CEO would you accept similar or lower
returns for full confidence in your fund?
THE RISE OF ETHICAL PRODUCTS.

5. “WHERE 100% OF
MANAGED FUNDS ARE
INVESTED IN BUSINESS
THAT DEMONSTRABLY
AND ACCOUNTABLY SHOWS
SOCIALLY RESPONSIBLE
PRACTICE.”
We’d like to propose a definition for ethical superannuation:
November 2016 // Page 5
A Pretty Neat Report // Ethical Super?

6. A Pretty Neat Report // Ethical Super?
November 2016 // Page 6
OVER THE PAST 90 DAYS IN
AUSTRALIA 57.4% OF ONLINE
CONVERSATION AROUND SUPER
FUNDS HAS BEEN NEGATIVE
OR SOMEWHAT NEGATIVE.4
THIS COMPARES WELL WITH
THE SHAREMARKET WITH
62.6% NEGATIVE SENTIMENT
AND BANKING WITH 68.4%
NEGATIVE SENTIMENT.4
Conversations around super
Monitoring of Category August-November 20164
Aside from the exceptional market circumstances surround the US election result,
our conversations show an interest and belief in good results and security in super
investment. In 2016 it is strange to see a large volume of public conversation online
without active involvement from the brands in the category.
It’s worth noting though that as consumers we are not interested in more
information, choice or data on ethical super. We just want the right advice
according to CHOICE Australia.5
WHAT CONSUMERS THINK.
27.1%
POSITIVE
7.6%
SOMEWHAT
POSITIVE
8%
MIXED16.4%
SOMEWHAT
NEGATIVE
40.9%
NEGATIVE

7. WHAT CONSUMERS THINK.
November 2016 // Page 7
A Pretty Neat Report // Ethical Super?

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A Pretty Neat Report // Ethical Super?
The top three superannuation topics outside of general
product conversation in the past 90 days6
were:
‘TAX’ (2891 POSTS) – WILL WE BE PAYING
MORE OF IT ON OUR SUPER? THE FEDERAL
GOVERNMENT IS CURRENTLY WORKING
THROUGH REFORMS AND BOOMERS ARE ON
THE EDGE OF THEIR SEAT.
‘#AUSPOL’ (2871 POSTS) – SCOTT
MORRISON’S SUPER LEGISLATION AND
THE LEAD UP WAS A STRONG THEME IN
AUSTRALIAN POLITICS OVER THE PAST MONTH.
‘LABOR’ (1578 POSTS) – CAN BILL SHORTEN
HELP? THE ALP ARE IN FAVOR OF MAKING
IT EASIER FOR LOW INCOME WORKERS TO
BENEFIT AND FOR INCOME THRESHOLDS FOR
HIGH INCOME EARNERS TO BE LOWER.
While we are active in discussion when our
income and investments are at risk we have little
to say around how our funds behave, where funds
are invested and by who.
Popular theories on this include embarrassment at
poor decisions in the past, a desire to avoid the issue
altogether, concerns about being duped and a focus on
immediate financial issue rather than future outcomes.
WHAT CONSUMERS THINK.
1
2
3

9. FUTURE SUPER
Future Super is a challenger brand, positioning itself as the honest
super fund. It’s the founder of Australia’s first fossil fuel-free
superannuation fund, launched in September 2014, and the world’s
first carbon neutral pension fund.7
Brand:
⁄⁄ Honest & upfront. They know who they are and what they stand for.
⁄⁄ Experienced. Even though they’re new, they’re backed up
industry professionals.
⁄⁄ Future Focused. Always looking to a greener future.
Strengths:
⁄⁄ Their brand communicates honesty and integrity. They avoid the murky
and undefined labels of ‘responsible’, ‘ethical’ and ‘sustainable’ badges.
⁄⁄ They effectively educate their market through social media activity.
⁄⁄ B-Corp certified8
Weaknesses:
⁄⁄ Their unique voice does not extend to their content. It tends
toward the generic at times.
GOOD SUPER
Good Super seeks to build a better Australia through using its
members’ wealth. They believe the current political environment is
not answering some of Australia’s most challenging problems.9
They
see their role as to build that bridge.
Brand:
⁄⁄ Nurturing. They contribute to your wealth and Australia’s future.
⁄⁄ Human & Authentic. They’re here to unite and improve our community.
⁄⁄ Experienced. They’re backed by some of the best investors and funds.10
⁄⁄ Future Focused. Always looking to build a better and positive future
through innovation and sustainability.
Strengths:
⁄⁄ Their brand language and illustrations communicate an authentic
and genuine message. You feel like you’ll make a real difference
if you invest with them.
⁄⁄ They look beyond ‘sustainability’ and ‘ethical’ to really build a vision
of a united and better future for Australia.
Weaknesses:
⁄⁄ Beyond their initial communications and marketing, they don’t
provide supporting evidence to invest with them. They lack the
depth that other super funds provide.
A Pretty Neat Report // Ethical Super?
November 2016 // Page 9
THE BRANDS.

10. THE BRANDS.
AUSTRALIAN ETHICAL INVESTMENT
Australian Ethical Investment seek to make a positive difference. They’re
driven to redefine how people invest their money – not just for financial
gain, but for the good of society and the environment.11 Established almost
30 years ago, they remain a pioneer in the investment industry and a
trusted alternative to a traditional super.
Brand:
⁄⁄ Professional and trusted, look and feel is similar to General Electric.12
⁄⁄ Focused on Australia’s future.
⁄⁄ Human & community-centered. Website is friendly and their
voice is authentic.
⁄⁄ Environmentally focused. Dashes of green.
Strengths:
⁄⁄ They offer members a solution to potential members who are drowning
in conflicting and irrelevant information.
⁄⁄ They share and tell a consistent story across all their platforms.
⁄⁄ B-Corp certified13
Weaknesses:
⁄⁄ They’re not showing the impact of their investments for
the individual and community.
LOCAL GOVERNMENT SUPER
Local Government Super are committed to a sustainable future for its
members. They avoid investing in companies who derive revenue from
controversial weapons, tobacco, armaments, gambling, old growth logging
and high carbon sensitive activities.14
Brand:
⁄⁄ Environmentally-focused. Green all over.
⁄⁄ Professional and trusted with government backing
⁄⁄ Community focused and involved.
Strengths:
⁄⁄ They’re well recognised and awarded because of their transparency
and ethical practices.
⁄⁄ They aim to educate and guide existing and potential members on the
importance of their retirement planning.
Weaknesses:
⁄⁄ Their name and unclear messaging prevents/hinders their potential
to grow beyond government employees.
A Pretty Neat Report // Ethical Super?
November 2016 // Page 10

11. A Pretty Neat Report // Ethical Super?
November 2016 // Page 11
REST SUPER
REST Super is amongst the largest funds by membership and has some of
the best performing products. ‘REST Super Core Strategy’ was ranked as the
top performing super fund in the industry.15
Brand:
⁄⁄ Trusted. Leave it up to them, they can help you out.
⁄⁄ Experienced and effective.
⁄⁄ High performing. They communicate that they’re “no.1 in the long run”.16
Strengths:
⁄⁄ They use effective metaphors and visuals to communicate why
you should invest with them.
⁄⁄ They website and social media platforms are rich with information
that help potential and existing members to make clear decisions
on their super.
Weaknesses:
⁄⁄ At some stages of the brand experience, they present too much
information at once. A potential member is overwhelmed and it’s unclear
what the next steps are.
⁄⁄ They do not consider ‘ethical’ or ‘responsible’ as something worth
mentioning. When searching their website for ‘responsible’ and ‘ethical’
there were no results.
HOST PLUS
As one of Australia’s largest super funds17
, they provide superannuation
fund for the hospitality, tourism, recreation and sport industries. Their
ongoing mission is to contribute to the financial growth and security
of their one million members.
Brand:
⁄⁄ Large. Around one million members, 100,000 employers and
over $18 billion in funds under management.18
⁄⁄ Passionate about providing great services and products to
their members.
⁄⁄ Super made easy.
Strengths:
⁄⁄ The website offers a great experience, guiding and educating you
on your super and what you need to do.
⁄⁄ They are well recognised and awarded within the industry.
Weaknesses:
⁄⁄ With such a large member base, their social media could be
used to inform, educate and guide current members not only
to recruit new ones.
⁄⁄ They could extend the experience of their homepage further to
how they explain their products and how members interact with
super on a regular basis.
THE BRANDS.

12. A Pretty Neat Report // Ethical Super?
THE BRANDS.
AMP FLEXIBLE SUPER FUND
AMP Flexible Super is designed to make super convenient. Their aim is to
make it easy, flexible to your lifestyle and accessible when you need it.
Brand:
⁄⁄ Friendly and easy to use.
⁄⁄ Established, its backed by AMP corporation.
⁄⁄ Flexible to your lifestyle.
Strengths:
⁄⁄ If you understand how super works, this super fund gives you the
control and flexibility your after.
⁄⁄ The AMP app allows for members to check their super account
balance, see what insurance they have inside super and see how their
investments are performing.19
Its a great step to help members engage
and understand their superannuation.
Weaknesses:
⁄⁄ The content is dry and irrelevant. Members need a previous
understanding of super to comprehend the statistics and reports
shown on their app. How can they encourage further engagement
from their members?
November 2016 // Page 12
IOOF HOLDINGS LIMITED
IOOF has been helping Australians secure their financial future for more
than 150 years.20
They’re one of Australia’s largest financial services
companies and we offer a full range of products and services, including
financial advice, platform management and administration, investment
management and trustee services.
Brand:
⁄⁄ Independent. They’re an independent financial institution, that
doesn’t provide restrictions on your growth.21
⁄⁄ Established. They’ve been the financial industry this since 1846.22
⁄⁄ Large. They’re established, so they can provide to your needs.
Strengths:
⁄⁄ They’re a large and established institution that have ridden
the highs and lows of the global financial system and members
benefit from this experience.
Weaknesses:
⁄⁄ Their lack of online presence (no mobile website or social media)
acts as a roadblock to consideration and new members.
⁄⁄ Key information is hidden and hard to find on their website.
This creates a broken and confusing experience for a potential
member researching products.

13. A Pretty Neat Report // Ethical Super?
November 2016 // Page 13
THE BRANDS.
SPACESHIP
When Spaceship launches, it is to be the disruptive force in the industry.
With launch date still to be confirmed, it’s already roughing up feathers.
Targeted at Millennials, they will have a technology focus in its investment
mandate, with companies including Apple, Google, Facebook, Amazon and
Microsoft at the core of the portfolio.23
Rather than invest in the companies
of the past, they want to invest in where the world is going.
Brand:
⁄⁄ Future-focused. Looking to the future rather than the past.
⁄⁄ Innovative. They’re not confined to only investing in the big 4 banks.
Looking to where real innovation is.
⁄⁄ Transparent. Know exactly where your money is going, check anytime.
⁄⁄ Human. Interactions are based on how you use technology.
Strengths:
⁄⁄ Strong offer to the millennial market, they’re aligned with their thinking.
⁄⁄ Strong mobile focus.
Weaknesses:
⁄⁄ Startup market is rocky, how can they ensure their members they will
provide returns for the long term?

14. A Pretty Neat Report // Ethical Super?
November 2016 // Page 14
WHILE THERE ARE SIGNS THE
INDUSTRY IS LOOKING TO
ENGAGE IN A MORE RELEVANT,
CONSUMER-FRIENDLY WAY THERE
IS LONG WAY TO GO TO MEET
BASELINE EXPECTATIONS AROUND
CUSTOMER EXPERIENCE, THE
ONLINE EXPERIENCE AND MEMBER
ENGAGEMENT.
How we invest our money will only become more important. By the end of next
decade it is predicted superannuation will be our single largest asset, overtaking
housing investments. We are working for longer and drawing on our assets later. A
bigger pie means more scrutiny, customer service demands and regulatory pressure.
Over the next decade as Boomers draw down on their super to supplement the
age pension and staff at super funds turn over the values of younger generations
will become a larger influence on fund investments. Clear reporting on ethical
investment as well as financial performance will differentiate funds.
Technological empowerment and strong ethical
imperatives will also support a growth in SMSF’s.
When a cat24
or the market average can out-perform
fund managers at major super funds the likelihood of
disruption from tech players is very real.
Whatever can be automated and done through digital
channels will be and where consumers can have choice
and control they will seek it out.
FUTURE STATE.

15. WHEN A CAT24
OR THE MARKET
AVERAGE CAN OUT-PERFORM
FUND MANAGERS AT MAJOR
SUPER FUNDS THE LIKELIHOOD
OF DISRUPTION FROM TECH
PLAYERS IS VERY REAL.
November 2016 // Page 15
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A Pretty Neat Report // Ethical Super?
EXPLAIN WHO YOU SERVE.
‘Industry’, ‘Government’ but available to all...it’s
all very confusing. Given the high incidence of
switching to ethical brands a bold play to be just
for ethical members could be rewarded.
DE-MYSTIFY WHAT YOU DO
What proportion of funds actually go
to ethical business?
LET TECHNOLOGY DO THE
HARD WORK FOR US.
Reading, researching, comparing and monitoring
our fund can all be outsourced to a trusted
technology with the right controls.
WHAT CAN BRANDS DO DIFFERENTLY?
1
2
3

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A Pretty Neat Report // Ethical Super?
TALK TO US IN THE CHANNELS WE
COMMUNICATE IN.
Mail and email are a chore. Members want to IM
or use social media for basic customer service
and expect quick responses.
IT’S ABOUT US, NOT ABOUT YOU.
Through advertising and marketing help us with a
small win today (like SunSuper25
), not talk about
the benefits to a 67 year-old me.
WHAT CAN BRANDS DO DIFFERENTLY?
4
5

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A Pretty Neat Report // Ethical Super?
THANKS.
SHARE A CHALLENGE
FOR YOUR SUPER BRAND
WITH US TODAY.
hey@prettyneat.com.au

19. A Pretty Neat Report // Ethical Super?
November 2016 // Page 19
1. Page 2 – http://www.igcc.org.au/resources/
Documents/RIA413_Benchmark_Report_A4_OZ_
v4%20(2).pdf
2. Page 2 – http://www.nestegg.com.au/investing/
equities/10439-aussie-trillions-driving-climate-
change
3. Page 4 – https://www.themonthly.com.au/
nation-reviewed-james-kirby-myth-ethical-
investment--243
4. Page 6 – Pretty Neat Radian6 monitoring of
category August-November 2016
5. Page 6 – https://www.choice.com.au/
money/financial-planning-and-investing/
superannuation/articles/why-consumers-avoid-
thinking-about-super-20161024
6. Page 8 – Pretty Neat Radian6 monitoring of
category August-November 2016
7. Page 9 – https://www.myfuturesuper.com.au
8. Page 9 – http://bcorporation.com.au/community/
future-superannuation-holdings-pty-ltd
9. Page 9 – https://www.goodsuper.com.au/
10. Page 9 – https://www.goodsuper.com.au/
11. Page 10 – https://www.australianethical.com.au/
12. Page 10 – http://www.ge.com/au/
13. Page 10 – http://bcorporation.com.au/
community/australian-ethical-investment
14. Page 10 – https://www.lgsuper.com.au
15. Page 11 – http://www.news.com.au/finance/
superannuation/best-and-worst-performing-
growth-super-funds-in-the-last-10-years/news-
story/c0671d52663823f1a0955dfa3fd409f4
16. Page 11 – http://www.rest.com.au/
17. Page 11 – https://hostplus.com.au
18. Page 11 – https://hostplus.com.au
19. Page 12 – https://www.amp.com.au/personal/
super-and-retirement/products/superannuation/
flexible-super
20. Page 12 – https://www.ioof.com.au/
21. Page 12 – https://www.ioof.com.au/
22. Page 12 – https://www.ioof.com.au/
23. Page 13 – https://www.spaceship.com.au/
24. Page 14-15 – https://www.youtube.com/
watch?v=c7c4Z6rZy3U
25. Page 17 – https://www.youtube.com/
watch?v=iyJ-gmWqn-4
END NOTES.