Here’s a compact, practical guide to creating a personalized values‑based investment approach in Australia — how it works, the options available, how to design a portfolio that matches your values, and next steps.

What “values‑based investing” means

• You choose investments based on ethical, social, environmental, or governance values in addition to financial return.
• Approaches range from negative screening (exclude things you oppose) to positive/impact investing (actively invest to create measurable social/environmental benefits), and stewardship (shareholder engagement and voting).

How Australians typically implement values-based investing

• Superannuation: directing your super fund to an ESG/ethical option or selecting an ethically‑focused retail fund. (Super is the major long‑term vehicle for most Australians.)
• Managed/managed ethical funds: retail or wholesale funds that screen or target impact.
• Exchange‑traded funds (ETFs) and index funds: low‑cost ETFs that track ESG/ethical indices or thematic areas (renewable energy, gender diversity, etc.).
• Direct shares and bonds: pick companies or green/social bonds that match your values.
• Impact investments & community investments: social impact bonds, community development finance, or direct lending to social enterprises.
• Alternatives: green property, renewable infrastructure funds, or private equity with an impact mandate.

Common values screens and strategies

• Negative/exclusionary screening: exclude fossil fuels, tobacco, weapons, gambling, etc.
• Positive/best‑in‑class: invest in companies scoring best on ESG metrics in each sector.
• Norms‑based screening: exclude companies that breach international norms (human rights, etc.).
• Thematic investing: focus on climate solutions, clean energy, health, education, affordable housing.
• Impact investing: pursue measurable social/environmental outcomes alongside financial return.
• Active ownership: vote proxies and engage companies to improve outcomes.

How to build a personalized values portfolio (stepwise)

1. Clarify and rank your values

   • Make a short list (e.g., climate change, Indigenous rights, animal welfare, gender equity).
   • Prioritise — tradeoffs are inevitable.

2. Decide the investment vehicle(s)

   • Superannuation for retirement savings.
   • Tax‑efficient investment accounts, brokerage for direct shares/ETFs, or managed funds for diversified exposure.
   • Consider liquidity needs and time horizon.

3. Choose a strategy for each value

   • Exclude vs actively seek impact vs engage: e.g., exclude coal but invest in renewable infrastructure or a green bond that funds projects.

4. Set financial objectives and constraints

   • Target return, risk tolerance, time horizon, fees, tax considerations.

5. Map values to concrete fund/asset types

   • Use thematic ETFs for climate, gender-lens funds for gender equality, community bonds for local projects, etc.

6. Check governance, measurement and reporting

   • Look for funds that publish clear ESG policies, measurable impact metrics, third‑party verification (e.g., MSCI, Sustainalytics scores, B Corp status), and transparent exclusions.

7. Build the portfolio and rebalance

   • Allocate across asset classes (equities, fixed income, alternatives) consistent with risk tolerance.
   • Rebalance periodically and review holdings for alignment with evolving values.

Practical tips for Australia

• Super: Most major super funds now offer an ethical or sustainable option — check your member choices or consider a fund that explicitly reports on ESG and impact. (If you want, I can look up options for your specific super fund.)
• Fees matter: some ethical funds charge higher fees; compare expected net returns after fees.
• Beware greenwashing: read fund disclosure, methodology for screening, and independent ratings.
• Consider engagement: funds that actively vote and engage can influence company behaviour over time.
• Documentation: ensure exclusions and impact targets are clearly documented and updated.

How to assess funds and providers

• Read the Product Disclosure Statement (PDS) and Responsible Investment policy.
• Look for disclosed exclusions, positive screening criteria, and examples of holdings.
• Check independent ESG ratings and look for third‑party verification or impact reporting.
• Ask about voting records and engagement activity.
• For impact funds, request measurable outcomes and how they are audited.

Risk and return considerations

• Values-based constraints can change portfolio risk/return characteristics (sometimes lower, sometimes similar or higher long-run returns depending on choices).
• Diversification matters — don’t overconcentrate in a single theme unless you accept the added risk.
• Consider long-term performance and how the fund’s strategy responded over different market cycles.

Regulation and standards to watch (brief)

• Australian funds must meet Australian financial regulations and disclosure requirements.
• Many providers follow international frameworks (UN PRI, TCFD) — look for adherence and reporting.

Next practical steps (quick checklist you can follow now)

• Write down your top 3 values and what you want your money to avoid or support.
• Check your superannuation member portal for an ESG/ethical option and read its PDS.
• Open a watchlist of 2–3 funds/ETFs that map to your values (or ask me to search specific funds).
• If you have >A$100k or complex needs, consider an adviser experienced in sustainable investing or a certified financial planner with ESG expertise.
• Commit to reviewing your portfolio annually for alignment and impact reporting.

Would you like help with one of the following?

• Find ethical/sustainable super options for a specific Australian fund (I can look them up).
• Shortlist ETFs or managed funds in Australia that match 1–2 specific values (e.g., climate solutions, Indigenous enterprise, animal welfare).
• Draft messages/questions to send to a fund manager or adviser to check values alignment.

Tell me which of those you want and I’ll either search and list options or prepare the questions for you.