Methodology

Funds

Super funds were included on Super Switch based on their size, or from a direct request by a representative of the fund or a member to be added to the site. Super Switch typically assesses the default or largest option within a fund and in many cases, assesses several options offered by funds. Market Forces invites funds to suggest an alternative option that it offers for additional assessment and profiling on Super Switch on the basis that it has less exposure to fossil fuels.

If you would like a fund added to Super Switch, please make this request via email.

We will continue to add more funds and options over time.

Holdings

We currently review only the Equities portion of a portfolio for exposure to fossil fuels. Holdings are sourced from publicly available information on the funds’ websites or, in some cases, material provided directly to Market Forces by the funds.

Most funds disclose only their largest shareholdings, very few disclose holdings across all asset classes.

We hope to expand our coverage to other asset classes, particularly as complete disclosure will become mandatory in the near future.

Calculation

Fossil Fuel Exposure = (Australian or International Shares Weight) x (Security Weight) / (Australian + International Shares Weights)

For example:

      • Allocation to Australian shares – 30%
      • Allocation to International shares – 25%
      • Holding in Santos Ltd – 5%
      • Exposure – 2.72%

The aggregate exposure of all companies in a given group is presented in the main chart, i.e. Fossil Fuel Companies, Diversified Companies and Fossil Fuel Lenders and Services.

The percentages presented in the main chart are the sum of both Australian and International shareholdings.

Asset Allocations

Asset allocations are sourced from publicly available information on the funds’ websites. If available, we prefer to use the actual asset allocation, if not the strategic or optimal asset allocation.

Example of how a fund may allocate its assets across several classes:

  • Australian shares – 25%
  • International shares – 25%
  • Fixed interest – 20%
  • Property – 15%
  • Infrastructure – 10%
  • Cash – 5%
Security Classification

Securities (holdings) are classified by the extent of their exposure to the fossil fuel industry. Please refer to the “companies” page of Super Switch for a list of companies and how they are classified.

Alternatively, Australian companies captured in Super Switch can be viewed in this document: ASX300 Classification Jun-16. International companies captured by Super Switch can be viewed in this document: MSCI World ex AU Classification Dec15.

Assumptions

If a fund does not disclose any holdings data, they will be listed as 100% unknown. We encourage members to contact these funds to request disclosure.

Some funds disclose privately to Market Forces, under the understanding that specific holdings data is not disclosed to the public. We do this in good faith, but continue to encourage funds to disclose publicly. Market Forces does not vouch for the accuracy of the information published or provided by the funds.

Super Switch does not rely on subjective opinions about the exposure of companies or funds to fossil fuels. Whether provided directly to Market Forces or made publicly available, we rely on the accuracy of information released by funds to assess their exposure to fossil fuel companies.

Market Forces has made all possible efforts to ensure the information is transposed accurately but acknowledges mistakes do happen, and invites funds and members to submit any corrections.

If a fund discloses their holdings without weights, we apply the index weight for that security, based on the date the holding was current. In these instances, we have used the S&P ASX300 Index for Australian shares, and the MSCI All Countries World ex Australia Index for International shares.

If a fund discloses the dollar value of the shareholding, we convert this into a percentage based on the total assets in the option.

Updates are performed on an ongoing basis. Please follow us on social media to be informed when new funds are added or updated.