Australian Ethical Investment

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

Australian Ethical Investment Limited
TypePublic
ASX: AEF
IndustryFinancial Services
Founded1986
Headquarters130 Pitt St, Sydney, Australia
Key people
John McMurdo (Chief executive officer)[1]
Mark Simons (Chief financial officer)
David Macri (Chief investment officer)
Productssuperannuation, managed funds, pensions
RevenueA$58.7 million (Y.E. 30 June 2021)[2]
Number of employees
50-60
Websiteaustralianethical.com.au

Australian Ethical has $6.54 billion in funds under management and over 71,000 clients (managed fund investors and funded superannuation members) as at 30 September 2021.[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, 2019 and 2021.[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 $6 million through community and strategic grants. In FY21 the company donated $1.8 million through the foundation.[13] 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.[14]

Ethical investing

Australian Ethical screens potential investments for adherence to the Australian Ethical Charter.[15]

Performance

Continuing excellent investment performance (as at 30 June 2021):

  • Australian Shares Fund delivered 43.1%[16] (1yr return)
  • Emerging Companies (Wholesale) Fund delivered 51.1%[17] (1yr return)
  • No.1 Australian Shares super option over 1, 3, 5, 7 and 10 years[18] (SuperRatings Fund Crediting Survey - SR50 Australian Shares Index Funds)
  • No.1 Balanced (MySuper) option over 3 years[18] (SuperRatings Fund Crediting Survey - SR50 MySuper Index)
  • Top 10 Super fund for 10 year performance (MySuper) - only retail fund[19]

References
  1. https://www.asx.com.au/asxpdf/20200204/pdf/44dt0yck7tbncw.pdf
  2. "Archived copy". Archived from the original on 29 November 2021. Retrieved 29 November 2021.{{cite web}}: CS1 maint: archived copy as title (link)
  3. Ethical, Australian (15 May 2021). "Quarterly FUM Announcement 1 July to 30 September 2021" (PDF). Australian Ethical. Archived (PDF) from the original on 29 November 2021. Retrieved 12 May 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. "Archived copy". Archived from the original on 5 July 2020. Retrieved 4 July 2020.{{cite web}}: CS1 maint: archived copy as title (link)
  13. "FY21 Community Grants".
  14. "Australian Ethical Foundation - Australian Ethical". Rebrand AEI. Retrieved 29 November 2021.
  15. "Australian Ethical Charter - Australian Ethical - Super and Managed Funds". Australian Ethical - Super and Managed Funds. Retrieved 7 September 2018.
  16. Past performance is not a reliable indicator of future performance.
  17. All financial results and metrics relate to year ended 30 June 2021 with comparatives relating to year ended 30 June 2020. Wholesale fund, after fees for the 1 year period ending 30 June 2021.
  18. SuperRatings does not issue, sell, guarantee or underwrite this product. See the website for details of its ratings criteria. SuperRatings performance figure is net of percentage based administration and investment fees
  19. “…only one for-profit fund – Australian Ethical Super Balanced (MySuper) – made the top-10 list when performance was compared over the past decade.” AFR 19 July 2021, Source: Chant West
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