Australian Ethical Investment

Australian Ethical is an ethical wealth management company based in Sydney.

Australian Ethical Investment Limited
TypePublic
Stock Symbol: AEF, Stock exchange(s): ASX
IndustryFinancial Services
Founded1986
Headquarters130 Pitt St, Sydney, Australia
Key people
John McMurdo, CEO,[1] Mark Simons, CFO (Chief Financial Officer), David Macri, CIO (Chief Investment Officer)
Productssuperannuation, managed funds, pensions
RevenueA$49.9 million (Y.E. 30 June 2020)[2]
Number of employees
50-60
Websiteaustralianethical.com.au

Australian Ethical has $5.05 billion in funds under management and over 62,000 clients (managed fund investors and funded superannuation members) as at 31 December 2020.[3] The company's flagship Australian Shares Fund has outperformed the average large-cap fund over the medium to long term.[4][5] Australian Ethical is one of the fastest growing super funds in the country by both number of members and funds under management.[6]

Since inception in 1986, Australian Ethical has invested according to the Australian Ethical Charter.[7] The Charter not only guides all investments but also underpins all elements of the business. For example, 10% of Australian Ethical's profits (after tax and before bonuses) funds the Australian Ethical Foundation and its Community Grants program.[8]

The company was a founding B Corp in Australia, and the first publicly listed company in Australia to achieve B Corp status.[9][10] It was awarded the B Corp "Best for the World" ranking it in the top 10% of B Corps globally in various categories in 2015, 2016, 2017, 2018 and 2019.[11]

Australian Ethical Charter

The company works off the framework provided by the Australian Ethical Charter, a list of 23 principles that have been part of the company constitution since 1986.[12] The Charter is used to make decisions about the companies Australian Ethical will and won't invest in.

Products & services

The company offers a number of superannuation, pension and managed fund products, all guided by the Ethical Charter.

Community giving

Australian Ethical distributes up to 10% of its annual profits (after tax and before bonuses) to charitable organisations and social impact initiatives through the Australian Ethical Foundation.[7]

To date, the Australian Ethical Foundation has granted over $4 million through community and strategic grants. The Community Grants selection process uses community voting to help decide the projects that are most important to the Australian community by engaging shareholders, members, staff and the general public to have their say.[13]

Ethical investing

Australian Ethical screens potential investments for adherence to the Australian Ethical Charter.[14]

Performance

In its 33-year history, Australian Ethical's funds tend to concentrate on long-term returns (especially superannuation).[15] In the 10 years to 30 June 2020 the company's Australian Shares Fund produced an average annual return of 10.3% p.a (after fees).[16] The MySuper product, the Balanced option, has outperformed its performance objectives for five years and returned (as at 30 June 2020) 6.5% p.a. over 5 years and 6.8% p.a. over 10 years. The company updates its fund performance monthly.

References
  1. https://www.asx.com.au/asxpdf/20200204/pdf/44dt0yck7tbncw.pdf
  2. https://www.asx.com.au/asxpdf/20200826/pdf/44lx37gdy35vs4.pdf
  3. "ASX Announcement: Quarterly FUM Announcement 1 October to 31 December 2020". ASX. Retrieved 14 January 2021.
  4. "Managed Funds Performance and Returns - Australian Ethical". Australian Ethical - Super and Managed Funds. Retrieved 5 September 2018.
  5. Morningstar Multi-Horizon Report, Australian Shares Fund Large Caps, Annualised Returns from July 1998 to June 2018.
  6. "KPMG Super Insights: Membership growth by fund (2019)". Retrieved 26 August 2020.
  7. "Australian Ethical Charter - Australian Ethical - Super and Managed Funds". Australian Ethical - Super and Managed Funds. Retrieved 5 September 2018.
  8. "Australian Ethical Community Grants 2018". Australian Ethical - Super and Managed Funds. Retrieved 5 September 2018.
  9. "Australian Ethical certified as a B Corporation - Australian Ethical - Super and Managed Funds". Australian Ethical - Super and Managed Funds. 20 February 2014. Retrieved 5 September 2018.
  10. "What's the buzz on B Corps? - Australian Ethical - Super and Managed Funds". Australian Ethical - Super and Managed Funds. 25 September 2017. Retrieved 5 September 2018.
  11. "Australian Ethical Investment | Certified B Corporation". bcorporation.net. Retrieved 12 July 2019.
  12. https://www.australianethical.com.au/adviser/ethical-investing/our-approach/australian-ethical-charter/
  13. Australian Ethical’s 2019 Sustainability Report.
  14. "Australian Ethical Charter - Australian Ethical - Super and Managed Funds". Australian Ethical - Super and Managed Funds. Retrieved 7 September 2018.
  15. "Super Performance and Returns - Australian Ethical". Australian Ethical - Super and Managed Funds. Retrieved 26 August 2020.
  16. "Managed Funds Performance and Returns - Australian Ethical". Australian Ethical - Super and Managed Funds. Retrieved 26 August 2020.
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