australian ethical investment limited is an australian owned company established in 1986 for the purpose of environmental and socially responsible investing .

the company is based in sydney and is listed on the australian stock exchange ( asx ) .

the company 's main products are a retail superannuation fund and a series of managed investment funds across australian and international shares , fixed interest , cash , smaller companies and diversified funds .

the superannuation fund is predominantly used by individuals as well as by responsible companies and not-for-profit organisations as the default option for their employees .

australian ethical investment

the performance of australian ethical has been recorded in the responsible investment benchmark report 2017 .
* the new ethical funds and australian ethical also charge a buy - sell spread .
australian ethical investment limited ( aef ) is a fund manager that specializing in environmental and socially responsible investments . aef public offers ethical managed funds ( registered managed investment schemes ) and retail superannuation fund . the funds are managed by australian ethical balanced trust using the australian ethical charter .
brief - australian ethical investment says hy underlying npat $ 2 . 2 mln , down 5 %
each year , australian ethical donates 10 per cent of its after - tax profits to charitable organisations and social impact initiatives through the australian ethical foundation .
riaa says there are an additional three managers who meet the most stringent of ethical investment principles which includes australian ethical , new forests and stewart investments .
simon o ' connor , chief executive of the responsible investment association , said ethical investment is increasingly popular .
last year , australian ethical awarded $ 300 , 000 in grants to 18 charities and social businesses working on australian and international causes .
an ethical and socially responsible investment screening process seeks to identify quality companies that have satisfied our range of ethical , environmental and socially responsible investment criteria .
the report ' s release comes just months after two of the nation ' s biggest ethical investment wealth managers , australian ethical and hunter hall investment management , vowed to completely get out of fossil fuels .
the recent release of the february mercer survey for managed funds and super shows australian ethical’s funds continue to lead in most investment categories .
the ethical investor magazine and website ranks the esg performance of australian companies and investment funds . it also covers the ethics of mainstream investment and information on socially responsible finance products .
the perpetual ethical sri fund is a specialist australian equity strategy that invests in a diversified selection of ethical and socially responsible companies .
according to rice warner , statistical evidence on superannuation funds suggests the rates of return between ethical investment options and non - ethical investment options do not vary materially .
australian ethical super is a specialist provider of corporate and personal superannuation and account - based pensions , with a focus on ethical investing .
yes , australian ethical super offers a consolidation service for members who have super in other funds .
in addition , the second best performing sri / ethical fund was australian ethical’s australian equities fund , the smaller companies trust , which returned 20 . 8 % for our investors over the 12 months .
1 $ 100 minimum investment for the uniting ethical enhanced cash trust and funeral fund .
australian ethical is a financial services company with a difference . all client money is invested according to the
david macri , cio , australian ethical was extremely pleased with the results as they continue to demonstrate the strength of australian ethical’s investment philosophy and processes , which have allowed its investors to participate in top quartile performance without compromising on ethics or their values .
the money in your australian ethical super super account is invested by your super fund . they offer a variety of ethical investment options that focus on people and community , quality , and sustainability .
esg investment manager , australian ethical , also says its funds consistently outperform .
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its website declares , and promotes its australian shares fund [ 3921 ] as being ranked first over 10 years in the recent mercer investment performance survey , august 2016 .
australian ethical investment , manager of several ethical funds , has a five - year annualised total return of 39 per cent , making it one of the market ' s top small - cap stocks .
eis services clients australia - wide and holds an australian financial services licence from asic . the company is also a founding member of the responsible investment association of australasia and the ethical investment advisers co - operative .
we ' re clearly demonstrating that ethical investing has truly come of age and can deliver strong investment returns while having a positive impact on our planet ,
said australian ethical managing director phil vernon .
australian ethical integrates the principles of b corporations across its entire business , not just its investment products . the company’s stakeholders include people , clients , shareholders and ultimately , the world . australian ethical is publicly listed on the australian stock exchange but manages to donate 10 % of profits to good causes as part of an annual community grants program .
the new research shows ethical australian share funds have actually outperformed their equivalent mainstream funds over the past 10 years .
australian ethical investment chief executive officer phil vernon told pro bono australia news the grants program was a key part of the company’s philosophy and helped organisations deliver social good .
“the australian ethical investment charter isn’t simply a guide for screening investments – it is the basis of our company culture and drives our commitment to improve the world around us .
ps . if you are not interested in australian ethical investment anymore , you can use our free platform to see my list of over 50 stocks with a high growth potential .
if you’re considering australian ethical super , check out what’s available below in our comparison table based on a super balance of $ 55k to $ 100k . to compare australian ethical super with other super funds , visit the canstar super fund comparison pages .
founded in 1986 , today australian ethical super is australia’s fastest - growing super fund and has more than 30 , 000 members .
demand is rising for responsible or ethical investment , as funds flow into the sector from mainstream funds and the product offering is growing as more investment managers join the trend .
australian ethical super rely on their ethical charter , which is a series of statements that guide both the positive side and negative side of their approach , and has remained unchanged since 1986 .
ethical etfs over fixed interest and other asset classes is another emerging development . it ' s understood australian etf issuers are considering launching ethical etfs over local and international fixed - interest indices .
the fund uses perpetual ' s proven investment approach to identify quality companies that are undervalued . additional layers of scrutiny are applied through a strict ethical and sri screening process . the fund ' s investment process is described in our investment brochure .
ethical wealth manager , australian ethical has opened its community grants program for 2016 , as part of the company’s purpose to make money do good , and it is calling on organisations to apply .
but the responsible investment benchmark report 2016 says ethical funds have performed strongly . that report analysed the performance of
core responsible
investment funds compared with their benchmark index and the average of equivalent mainstream funds and outperformance of ethical investments across several australian equities , international equities , and balanced managed funds over several different time periods .
fund managers are lining up to seize the opportunity . sixty - nine asset managers offered ethical or socially responsible investment products in 2015 , from 29 a year earlier . and many superannuation funds have upgraded their ethical investment options to satisfy member demand .
phil vernon , managing director of australian ethical , which oversees just over $ 2 billion , said the success of his fund speaks for itself .
backed by sound industry experience , our privately - owned practice provides an ethical alternative to help meet your financial goals . operating since 1988 , eis continues to be instrumental in the promotion and growth of ethical investing in the australian financial services landscape , achieving this by working within industry to develop robust ethical investment solutions for clients .
data shows that the average performance of strict australian responsible investment strategies outperformed the average large cap australian active manager and the s & p ; / asx300 accumulation index over three , five and 10 years by anywhere between 40 and 250 basis points .
ethical investing and esg , although they are related , are different concepts . ethical funds avoid harmful sectors ; esg , a more holistic investment approach , integrates esg principles into portfolio decisions .
we have always believed that ethical investing will come of age and be part of the mainstream rather than a fringe sector ,
says australian ethical investment managing director , phillip vernon .
it ' s happening . people no longer believe the myth that they have to make sacrifices on portfolio returns when investing in ethical funds .
australian ethical investment ltd . is a publicly owned investment manager . the firm launches and manages equity , fixed income , and balanced mutual funds for its clients . it invests in the public equity and fixed income markets across the globe . the firm invests in clean transport , renewable energy , water technologies , infrastructure , recycling and waste management , organic produce , health care , property , technology , and knowledge sectors . australian ethical investment ltd . was founded in 1986 and is based in bruce , australia .
australian ethical investment limited is engaged in acting as the responsible entity for a range of ethically managed investment schemes . the company also acts as the trustee of the australian ethical retail superannuation fund . it operates through fund management segment . the company ' s products include super , managed funds and pensions . the company invests in clean energy solutions , such as solar and wind ; energy efficiency , such as light emitting diode ( led ) lighting , motors and smart energy management technologies ; other products and activities , such as recycling , insulation and battery storage ; healthcare ; medical research ; communication ; education ; information technology ; responsible banking ; aged care , and sustainable products . its managed fund is a managed investment portfolio and can include investments in shares , property and fixed interest . its subsidiaries are australian ethical superannuation pty limited and australian ethical investment limited employee share plan trust .
australian ethical has opened its 2017 community grants program , encouraging organisations working to deliver tangible benefits for people , the planet , and animals to apply .
the purpose of this tool is to assist you to find out about financial products that apply a responsible or ethical investment strategy that may be of interest to you . the information provided by this tool is not a recommendation to invest in any investment products . the tool does not take into account your particular investment objectives , financial situation or investment needs , all of which should be considered prior to making an investment decision . you should seek professional financial advice before making any investment decision .
australian ethical investment’s recent performance doesn’t indicate a competitive strength as it didn’t pass any of the two hurdles . while this could be worrying for investors , we should remember to account for other important factors such as future growth expectations and whether this underperformance is currently priced into its valuation . i recommend you check out our latest free analysis report on australian ethical investment to see what are aef’s growth prospects and whether it could be considered an undervalued opportunity .
commenting on the opening of the grants program , australian ethical chief executive , phil vernon said the fund’s investment charter wasn’t simply a guide for screening investments , but also drove its commitment to making the world a better place .
ethical and sustainable investing has always struggled to lift itself into the mainstream and today only 2 per cent of australia ' s total investment dollars are managed under an ethical or socially responsible banner .
investment returns of superannuation products : canstar considers the annual investment returns of a product’s default investment option , including the default life - stage option where applicable . where a product does not have a default investment option , annual returns for the investment option with the highest funds under management ( fum ) and a 60 - 80 % growth asset allocation are used .
australian ethical last year awarded $ 260 , 000 in grants to 18 charities and social businesses working on australian and international causes . the recipients were varied and included an indigenous welfare group , marine conservationists , and an organisation protecting women from sex trafficking .
ethical investment services is one of australia’s longest - standing financial planning firms , specialising in offering advice to clients who prefer to invest ethically .
perpetual investments researches companies of all sizes using consistent share selection criteria . perpetual investments ' priority is to select those companies that represent the best investment quality and are appropriately priced . in determining investment quality , investments are carefully selected on the basis of four key investment criteria : conservative debt levels sound management quality business and in the case of industrial shares , recurring earnings . in addition to the above investment approach , perpetual investments utilises a strategy for screening ethical and socially responsible investments ( see environmental , social and ethical factors and labour standards - perpetual ethical sri investment option ' in the investment book ) . derivatives may be used in managing the fund .
konrad completed his studies at the universität bielefeld , in germany and at the australian national university in australia . he worked for the asx - listed fund manager australian ethical investment limited from 2000 to 2002 . subsequent to that he helped establish caer in 2002 and continues to work for the business . he is currently also a board member of the association for responsible investment services ( arise ) based in brussels , belgium .
when choosing an investment option , it is important to take into your account investment timeframes and goals , and your personal risk tolerance for market fluctuations . learn more about how to choose between different investment options on the canstar website .
growth is being driven by a new generation of investors who are aligning their investment values with personal values ; the consistent outperformance of ethical funds on average ; and belated recognition that ethical investing reduces portfolio risk .
the australian securities and investments commission ( asic ) has issued a warning to licensees in . . .
what sets these investment products aside from regular ones on the market is they all have some type of responsible or ethical strategy applied to them .
the norwegian state fund is not an “ethical” , “socially responsible” or even ”sustainable” fund . it’s just a fund run by people with ethics . we’d all probably be better off if there was no ethical - investment “industry” , and instead more funds run by ethical fund - managers .
ethical fund assets grew 62 per cent in 2015 to $ 52 billion , shows the latest responsible investment association australasia ( riaa ) benchmark report . the sector has doubled in two years as responsible investing redefines the investment landscape .
james co - founded asx - listed australian ethical investment and was an executive director for 20 years . james was an inaugural board member of the ethical investment association ( now the responsible investment association of australia ) . throughout his career james has held senior positions within peak bodies of the credit union , local government and academia . james has also worked as an investment advisor for a us global impact / microfinance firm . through a churchill fellowship , james studied shareholder advocacy mechanisms in the united states and europe . in addition to his commitments with caer , james is currently a director of future super and a member of its investment committee .
, meaning that australian ethical avoids investments that harm people , animals and the planet and seeks out investments that will create positive , sustainable change for society and the environment .
by providing ethical investment solutions , we feel we are taking action to change the world’s financial priorities while encouraging others to be part of the solution .
david jones has been part of the fabric of australian society since 1838 . we are committed to strengthening that legacy through our community investment programs , which aim to create positive social impact .
the listed investment manager recently reported strong interest in its products . australian ethical ' s half - year revenue to 31 december 2016 increased 22 per cent to $ 13 . 3 million , up from the $ 10 . 9 million recorded for the previous corresponding period .
if you have online account access , you can complete the additional investment form online .
australian ethical has now been in existence for 30 years , but as recently as six years ago , when vernon became ceo , he admitted the ethical banner could have been as much as a hindrance as a help for getting new money in the door .
perpetual investments researches companies of all sizes using consistent share selection criteria . perpetual investments ' priority is to select those companies that represent the best investment quality and are appropriately priced . in determining investment quality , investments are carefully selected on the basis of four key investment criteria : conservative debt levels sound management quality business and in the case of industrial shares , recurring earnings . in addition to the above investment approach , perpetual investments utilises a strategy for screening ethical and socially responsible investments ( see environmental , social and ethical factors and labour standards - perpetual ethical sri investment option ' on page xx ) . derivatives may be used in managing the fund .
it used to be that the ethical banner limited the firm ' s ability to grow . but now australian ethical has begun to find a bloody - minded adherence to its sustainability and ethical principles has opened up a world of exponential growth . by 2020 it has set an ambitious target of $ 5 billion of funds under management .
the perpetual australian share fund is a diverse portfolio of high quality australian shares , managed by one of australia’s most experienced equity management teams . the fund aims to provide investors with long - term capital growth and regular income .
responsible investment association australasia chief executive simon o ' connor said that these returns were contributing to broad acceptance of ethical investment strategies among both retail and institutional investors which has led to a quadrupling of assets managed under these guidelines over the last three years .
principles for responsible investment were developed by an international group of institutional investors , reflecting the increasing relevance of esg issues to investment practices . the process was convened by the united nations secretary - general . details of the principles and signatories , which include australian fund managers , are available at urltoken .
today in australia we see that one in every $ 2 is invested under some form of responsible or ethical investment strategy ,
mr o ' connor said .
that is drawing other esg product providers into the investment market . the newly launched betashares global sustainability leaders etf ( asx : ethi ) , for example , provides a cost - effective option for ethical investment for those who are fee and climate - conscious .
capture the growth and income potential of australian shares by investing with one of australia’s largest and most experienced share investors .
as with any financial product , it pays to understand the detail before investing . knowing what the ethical fund owns , its investment mandate , personnel and record , is critical . investors with deep convictions might find they invest in new - style ethical funds that do little more than replicate the main sharemarket indices – for unnecessary high fees . they may also find that not all ethical funds are ethical .
australian ethical is an ethical superannuation , pension and managed fund provider . our investment objectives are founded upon the australian ethical charter , principles guiding our portfolios . we seek out and support investments that provide positive , sustainable change for society and the environment . we do not invest in industries such as tobacco , uranium , coal mining , csg , exploitation of people or old growth forest logging . we are also the first publically listed company in australia to earn b corp certified status and donate 10 % of our profits as part of our annual community grants program .
if you satisfy all of the above eligibility criteria , then you can apply to join australian ethical super . you can sign up for an australian ethical super account by by clicking on their products in canstar’s superannuation comparison tables and then signing up online on their website ( they say it takes less than 3 minutes ) , or calling them on 1300 134 337 ( open mon - fri ) .
the gunns ' experience jolted vernon , who was until then ensconced in mainstream finance , to seek out a role in what was still a fringe area in financial markets , sustainable and ethical investing . in 2010 , he became the ceo of funds management firm , australian ethical .
established almost 30 years ago , australian ethical has always been a pioneer in the investment industry and there was a natural alignment between the b corp movement and our corporate values . through our investments , we are trying to help build capacity for ethical businesses and by becoming a certified b corporation we wished to support and grow a community promoting better business for a better world .
one of the oldest and largest ethical funds on the asx is australian ethical investment , which has led the pack in banning woolworths after its move into gambling . but aei is suffering because of its hardline approach . many of its rivals are growing faster than it is . while aei and other traditional funds still espouse such high - minded ideals as “the preservation of endangered eco - systems” , newer fund managers such as ausbil dexia talk about “ethical opportunities” .
the australian prudential regulation authority in february warned financial institutions that climate change must be viewed as a risk - management issue .
yes , australian ethical super has a dedicated online portal for their super fund members . you can view your account balance online , access statements for your account , download super fund information , and more .
returns are the second factor driving the ethical investing boom . new evidence is emerging that ethical funds achieve higher returns – a message that is getting to investors .
ethical investment in australia has hit record levels , with more aussies than ever keen to back environmentally and socially positive ventures over industries like tobacco , alcohol , guns and gambling .
the report will be good news for companies like bt investment management , new forests , investa property group and amp capital - - some of the biggest names in core responsible investment in australia .
perpetual is a signatory to the united nations - supported principles for responsible investment ( pri ) .
core responsible investment australian share funds outerperformed the s & p ; / asx 300 index and average large - cap australian equity funds over one , three , five and 10 years to the end of 2015 , riaa data shows . sustained outperformance is rare in active funds management , where the majority of funds underperform their benchmark index over long periods .
the risk is the boom attracts too many managers who latch on to demand for ethical funds by launching
light green
products that do meet ethical investing standards .
the fund has delivered strong returns over the long - term and has outperformed the broader market – an indication that investing in ethical and sustainable companies may not necessarily compromise investment returns .
exchange - traded funds ( etfs ) are entering the fray . betashares in january launched the global sustainability leaders etf ( ethi ) on the asx and ubs has several ethical etfs over global sharemarket indices that exclude tobacco and controversial weapons stocks . russell investments in april 2015 launched the russell australian responsible investment etf .
all this discussion and research has informed our community investment strategy and the selection of our charity partners .
a selection of research and reports developed or commissioned across perpetual’s investment , advice and corporate trust businesses .
listed investment companies ( lics ) , a form of listed managed fund on the asx , is another new option for ethical investors . the morphic ethical equities fund raised almost $ 50 million in an initial public offering ( ipo ) and listed on the asx in early may .
annual cost includes administration fees and indirect costs ( including the investment fee , performance fee where applicable , and any other indirect management costs ) . this cost is calculated based on the super balance specified and the investment option considered in the 2018 superannuation star ratings , which is the default investment option ( including default life - stage options ) . where a product does not have a default investment option , annual fees for the investment option with the highest fum and a 60 - 80 % growth asset allocation are used .
recent performance figures could have something to do with australian ethical ' s growing popularity . steering clear of fossil fuel meant entirely avoiding the commodities rout . in the year to the end of january it ' s australian shares fund was up 11 . 2 per cent while the asx / s & p200 ; was down more than 10 . 2 per cent .
years of demonstrated long - term investment benefits to investors , who consider environmental , social and governance ( esg ) factors , have quietly shifted around half of australia ' s investment industry to invest responsibly .
the company ' s been going for 30 years . the track record of our australian ethical shares fund has been going for over 20 years and it ' s returned about 10 per cent per annum over that period .
that includes amp capital , amundi asset management , ati asset management , axa investment managers , blackrock , celeste funds management , colonial first state global asset management , dexus property group , ifm investors , investa property group , lendlease investment management , perpetual investments , qic , rrare infrastructure , robeco and solaris investment management .
we expect strong growth in ethical etfs on the asx ,
says betashares managing director , alex vynokur .
the launch of ethi on the asx , which adopts a rigorous ethical investment approach , delivers proof that ethical investing does not need to involve high fees . it can be done just as effectively through etfs , with transparency and at far less cost .
simon hoyle has been a finance journalist for more than 25 years – a finance journalist because the football and motorsports rounds at the age were filled when he was awarded a cadetship . he worked on brw and personal investment magazines , and was part of the team that launched money management . hoyle spent 11 years at the australian financial review before moving on to be an investment writer for the sydney morning herald and the australian . he was appointed editor of professional planner in november 2007 .
performance of responsible investment strategies was more mixed when compared among international equity and multi - sector growth funds .
stay up - to - date with economic and investment market developments with the latest insights from perpetual’s experts .
“it’s a real testament to not only our investment philosophy , style and process , but to an excellent and highly experienced investment team that are heavily focused and motivated on delivering sustainable outperformance , ” mr macri concluded .
vernon believes up to 10 per cent of the australian investing public , or 1 . 5 million people , have high ethical convictions that will drive their investment behaviours .
there ' s a rising social consciousness in the way people consume goods and a growing sense of empowerment as more people express themselves through the way they invest .
the most ethical section of the responsible investment market , known as ' core ' responsible investments , experienced the biggest increase , up 60 percent from 2014 to a record $ 51 billion last year .
the report also found that responsible investment funds outperformed mainstream funds - - great news for ethically minded investors who also want to turn a profit . the average responsible investment fund returned 8 . 3 percent over a year while the large cap australian share fund average return was 3 . 2 percent and the asx 300 accumulation index returned 2 . 6 per cent .
the largest part of the ' core ' responsible investment category , so - called
screened investments
, rose 16 percent in 2015 , to $ 24 . 7 billion . this type of investment refers to when certain stocks are dropped from portfolios because of ethical concerns over products like tobacco and coal companies .
caer is a leading provider of independent research and services relating to the environmental , social , governance ( esg ) and ethical performance of companies and investment portfolios . © caer 2017 . all rights reserved .
it ' s important to do your own research when comparing funds . the riaa is a good starting point , detailing the investment strategies of ethical and sustainable funds that have been certified through its program .
while performance over the medium to long term was superior , strict responsible investment strategies lagged over the short term in calendar 2016 as many resource and energy stocks – which are typically excluded from responsible investment strategies – rebounded strongly .
perpetual investments researches companies of all sizes using consistent share selection criteria . perpetual investments ' priority is to select those companies that represent the best investment quality and are appropriately priced . in determining investment quality , investments are carefully selected on the basis of four key investment criteria : - conservative debt levels - sound management - quality business and - in the case of industrial shares , recurring earnings . in addition to the above investment approach , perpetual investments utilises a strategy for screening ethical and socially responsible investments . derivatives may be used in managing the fund .
because australian ethical has a point of difference and a story to tell , that in itself has become its biggest marketing asset , vernon reckons . this , he points out , contrasts with the commoditised way in which financial services are generally delivered .
by seeking out positive investments that support people , quality and sustainability , and avoiding investments that harm people , animals , society or the environment , australian ethical super can help members feel good about where the money from their super is being invested .
the lic structure appeals to people who want exposure in ethical funds directly and may not have a lot to invest , so are not viable clients for financial planners ,
he says .
we believe ethical lics can take ethical investors to a wider audience , including younger investors .
the arrival of etfs in ethical investing is telling . this style of investing traditionally suits active fund managers who spend extra time assessing the ethical credentials of companies , in addition to their potential returns .
perpetual’s investment experts share their insights on a range of topics – from portfolio construction to stock picking and risk management .
all investments carry risk . while it is not possible to identify every risk relevant to your investment , we have provided details of the risks that may affect your investment in the relevant product disclosure statement ( pds ) or offer document .
the intersection of these forces should mean more money flowing into ethical funds , more managers entering the sector and a wider range of product that provides a spectrum for investors to choose the level of ethical investing that matches their conviction . greater scale in ethical investing should , in theory , lower fees .
if you ' re considering ethical investment , look for a fund that ' s a member of the responsible investment association australasia ( riaa ) . the peak body created a certification program in partnership with the nsw department of environment and conservation and the victorian government in 2005 , with a view to making uniform standards of disclosure for funds .
duncan has worked extensively in the field of responsible investment , both in australia and in the uk with eiris . duncan enjoys working with a broad range of investors to incorporate environmental , social and governance criteria into their investment processes . in addition to his work with caer , duncan served for 10 years on the board of the industry body for responsible investment in australia , the responsible investment association australasia ( riaa ) ( the last few years as chair ) , and for 10 years as a director of the hong kong - based association for sustainable and responsible investment in asia ( asria ) .
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david jones is committed to using our influence as an iconic australian brand to embrace diversity in all its forms , for a more inclusive organisation and community .
the smith family runs a variety of learning and mentoring programs to enable australian children from disadvantaged backgrounds to participate fully in their education . our commitment is to help more australian children to get the most out of their education , giving them an equal start in life and helping to break the cycle of disadvantage .
ethical investments are those made in healthcare or clean energy , away from ties to coal or tobacco .
ethical investment options with both positive screening ( investing in companies that make a positive impact for the world , e . g . clean energy , medical solutions , innovative technology , education , and recycling companies ) and negative screening ( avoiding investment in companies that hurt the planet , e . g . slave labour and asylum seeker detention companies )
nithya has worked across esg research , responsible investment analysis , and financial services advocacy . her previous experience includes managing environmental and social research at the australian council for superannuation investors , research and analysis at the responsible investment association australasia and leading advocacy for trustee policy at the financial services council . nithya holds a bachelor of arts ( politics & international relations ) and bachelor of commerce ( finance & accounting ) double - degree from monash university . she is passionate about the development of sound esg practices across all forms of investment .
riaa acknowledges the growing interest in launching new strategies and says there are 16 australian fund managers that walk the talk when it comes to implementing an esg framework .
the table above shows the total fee cost per year to have a super account with australian ethical super . compare these fees to the average super fund fees on our database , as it’s important not to let your super be eaten away by fees before you retire .
the perpetual wholesale industrial share fund is an actively managed portfolio of quality australian industrial shares . the fund aims to provide long - term capital growth and regular income .
review the product disclosure statement ( pds ) for wealthfocus wholesale super plan and other offer documents and consider your investment option carefully .
australian ethical is driven to redefine how people invest their money – not just for financial gain , but for the good of society and the environment . we have a deeply held belief that the conscious movement of money can have a positive impact in the world , for all .
it’s important to check with your old super funds for information regarding costs such as exit fees and insurance cover you may lose if you switch super funds . if you have any questions or concerns about the rollover process , give australian ethical super a call on 1300 134 337 .
still , it’s surely logical that the more restricted your investment range , the less likely you are to make money . this problem is most acute for purist ethical funds that want to invest in progressive new products such as medical technology or telecommunication software . for overseas funds located in london or new york , there is no lack of choice . in fact , both the us and the uk have deep enough stock markets to maintain specialist indices such as the dow jones sustainability index and the 4good index , which provide a benchmark for ethical investments . but there are slim pickings for the australian funds , forced to make the best of the meagre offerings on the resource - laden australian stock exchange .
please note that the performance information shown in the table is for the investment option used by canstar in rating of the superannuation product .
among these lendlease has the most assets under management with around $ 13 billion of property being managed according to core responsible investment principles .
last year , as resource stocks – which are often avoided , on environmental grounds , by ethical funds – drove the market higher , ethical funds failed to keep pace . the ratings agency morningstar has said that mainstream funds gained 21 . 9 % , while ethical funds rose by 18 . 89 % . there’s the rub : 3 % in lost profits . over the longer term , the news is better . a swag of local and international studies show that ethical investments do not necessarily do better or worse than mainstream funds . in the vernacular of investment management , they are “cost - neutral” .
“it is a core part of our business and in fact we also volunteer with some of the recipients as well… one of the recipients last year was an organisation called green connect… it’s a fantastic organisation and we actually had a team from australian ethical go and volunteer for them last week . ”
riaa chief executive simon o ' connor said the strong numbers showed an entrenched desire from local consumers for ethical stocks .
so if you want to do business , you really need to be considering deeply responsible and ethical issues .
ethical investing , technically described as core responsible investing , accounted for 3 . 8 per cent of total assets under management in 2015 . after hovering between 1–2 per cent for years , ethical investing ' s share of managed funds is soaring . although official 2016 figures are yet to be tallied , ethical investing has , anecdotally , had a boom year .
find out how australia’s 53 largest superannuation funds are engaging in responsible investment to influence better company behaviour and contribute to more sustainable financial markets .
according to the most recent statistics from the responsible investment association australasia ( riaa ) , responsible investment constituted $ 633 . 2 billion in assets under management ( aum ) as at 31 december 2015 , around half of all assets professionally managed in australia ( 47 per cent ) .
core responsible investment funds grew by 60 per cent to $ 51 . 5 billion in aum in 2015 , having doubled in two years .
philanthropy is a major part of perpetual’s culture . we’re trustee for nearly a thousand charitable trusts and endowments and work every day with philanthropists and nfps in this crucial part of australian life .
with full disclosure at hand , it may end up being a trade - off between ethical considerations and financial ones . choosing the fund that has the right mix for your ethical and financial needs depends on what factors are most important to you .
while roe can be calculated through a very simple calculation , investors should look at various ratios by breaking it down and how each of them affects the return to understand the strengths and weakness of a company . it’s one of the few ratios which stitches together performance metrics from the income statement and the balance sheet . what are the analysts’ projection of australian ethical investment’s roe in three years ? i recommend you see our latest free analysis report to find out !
phil has over 15 years’ experience in the responsible investment industry . he is responsible for coordinating caer’s research and providing clients with advice and support to make the most of caer’s products and services . phil holds a bachelor of applied science ( honours ) and a graduate diploma in applied finance and investment .
review the product disclosure statement ( pds ) for wealthfocus investment advantage and related documents to ensure you understand how the fund works and the risks involved .
responsible investment helps people to invest in line with their values and their financial needs . however , investors are hampered by the fact there ' s no single definition for what can be called ' ethical ' , ' sustainable ' , ' socially responsible ' or ' socially responsive ' .
another option is to get professional advice ( an adviser accredited by the riaa may be able to help ) . make sure your adviser is licensed by the australian securities and investments commission ( asic ) .
what ' s telling is where the new money is coming from : australian ethical is having a success with individuals seeking the company out and investing directly . about 80 per cent of new funds come to the firm directly , according to vernon , while most funds ' managers still receive the bulk of their funds flows via financial advisers .
“our diversified equities fund , the larger companies trust , was not only the top performing sri / ethical fund over the 12 months ending 28 february , it was also the top performing fund in the mercer all growth survey of retail funds , returning 20 . 9 % over the last 12 months . the trust has a 25 % allocation to the award winning australian ethical international equities trust with 75 % allocated to companies listed on the asx , ” mr macri said .
the emergence of long / short ethical funds ( buying companies with good esg practices and short - selling those with poor esg ) is another complication . so is the rise of ethical global etfs that are stacked with us technology stocks that rate well on esg criteria .
interest and demand for ethical investments is growing , and the morningstar sustainability rating can help investors put their money where their values are .
the perpetual ethical sri fund aims to provide long - term capital growth and regular income by investing in shares of socially responsible companies .
) —market capitalization of aud $ 127 . 80m , ending up with a low single - digit , - 4 . 25 % , decline in its eps of over the past year might lead us to question its operating environment and growth prospects . for long - term investors though , a more important metric is the enduring trend in earnings growth and how the company fared against the industry . to analyze these factors , i’ll run two simple tests on australian ethical investment’s most recent annual eps growth .
for the riaa , the rapid expansion of the esg approach is an opportunity to bring all investments under an ethical umbrella , bound together by the universal goal of seeking higher returns . applying a universal approach that ' s driven by returns to investors as well as ethical concerns is particularly critical , riaa says , since ethical funds that rely only on screening make up a small part of the consumer market .
years of experience : 34 ( 12 + years in investment industry and 20 years in corporate life ) years at perpetual : 15 maryanne is the deputy portfolio manager - ethical shares and an analyst , covering mainly large and small cap companies in the industrials , consumer staples , and consumer discretionary sectors .
disclaimer : please note caer does not provide any financial services . it undertakes research on esg performance and the ethical merits of corporate behaviour .
so - called responsible or ethical investments have more than quadrupled over the past three years to roughly $ 622 billion , new private research shows .
the key finding in this year ' s report , which focused on 91 asset managers , is that ethical investing is taking off in australia .
the stakes have risen so high because of compulsory superannuation . on 1 july 2005 , “superannuation choice” became law , allowing employees to choose where they invest their superannuation money . it’s no coincidence that the range of ethical funds is widening dramatically . but are all these funds , well , ethical
ethical investing has so far mostly focused on equities . now more investors want to know that fixed and floating - rate securities are issued by companies with sound esg practices , from non - harmful sectors . ethical funds over property securities are another possibility as investors favour buildings with higher environmental ratings .
nina joined caer after completing a bachelor of international relations ( honours ) from the australian national university . she has a particular interest in methods of negative screening in the investment process and indigenous and human rights issues . nina has also specialised in human capital management and psychosocial health in the workplace . this interest began with an engagement with acsi concerning psychosocial health in the utilities , mining and financial sectors .
most mainstream investment firms outsource interactions with their clients to call centres . but people want to engage because they want a conversation about the underlying stocks ,
he said .
perpetual’s select funds are multi - manager funds . they combine a wide range of asset classes and the specialist investment expertise of managers from across the globe - within a single fund
why has it come to this ? why can’t ethical funds apply a baseline test of “christian principles” , or a similar , secular version of an ethical litmus test ? the answer lies in the highly competitive nature of financial services : everyone wants to invest ethically , but nobody wants to lose money .
industry insiders believe the sector will double within three to five years . if that goal is met , roughly another $ 50 billion will flow into ethical funds , attracting 700 , 000 new investors ( based on an average managed fund balance of about $ 70 , 000 in some ethical funds ) .
the fund is designed to meet the needs of investors who want to invest in companies that satisfy a range of social , environmental and ethical considerations .
the fourth factor driving ethical investing is the removal of industry bottlenecks . as superannuation funds show greater interest in esg performance , more fund managers are incorporating esg data into their investment analysis . this is forcing large stockbroking firms to produce detailed company esg analysis and underpinning growth in a new industry of external esg data providers and analysts .
within its australian equities portfolio the firm can invest in westpac but none of the other big four banks . westpac has been more forthcoming with its exposure to fossil fuels through its corporate loan books than the other three , vernon said .
in the battle to gain a few extra percentage points , the ethical war may be lost . james thier , an executive director of aei , says ”ethical” must always come first , and “investing” second . “ that’s our rule , ” he explains over ( predictably ) a soy coffee in a paddington bookshop .
the biggest ethical shift in recent years has been the increasing dominance of the sustainable approach , or environmental , social and governance risk management ( esg ) .
morningstar ' s murphy adds that managed funds that are labeled
esg
or
ethical
are generally also more expensive than non - esg funds .
it’s a problem of definition . for efficiency’s sake , commentators like to lump all the ethical - style funds together . but inside the industry , there are apparent distinctions between ethical investing , representing the original purist approach ; socially responsible investing , a kind of pro - active ethical investing less likely to have outright bans on companies ; and sustainable investing , which is evolving into a pragmatic approach that seeks to “do the right thing” for long - term growth . unfortunately , the distinctions don’t amount to much . everyone , it seems , has a different definition ; some players even define their principles on the run . as the catholic theologian germain grisez warns , “while certain ethical investment vehicles are advertised as ‘socially responsible’ , the notion of socially responsible here may not reflect a judgment conformed to christian principles . ”