Australian Ethical Investment

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

Australian Ethical Investment Limited
Public
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$41.0 million (Y.E. 30 June 2019)[2]
Number of employees
50-60
Websiteaustralianethical.com.au

Australian Ethical has $3.87 billion in funds under management (as at 31 December 2019)[3] and over 43,079 superannuation members (as at 28 August 2019).[4] The company's flagship Australian Shares Fund has outperformed the average large-cap fund over the medium to long term.[5][6] In 2018 Australian Ethical was the fastest growing super fund by member growth in Australia over five years.[7]

Since inception in 1986, Australian Ethical has invested according to its Ethical Charter.[8] 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 its Community Grants program.[9]

The company was a founding B Corp in Australia, and the first publicly listed company in Australia to achieve B Corp status.[10][11] 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.[12]

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.[13] 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.[8]

Through its Community Grants initiative, Australian Ethical has donated over $2.5 million since the program started.[14] The 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.

Ethical investing

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

Performance

In its 32-year history, Australian Ethical's funds tend to concentrate on long term returns (especially superannuation).[16] In the 10 years to 30 June 2019 the company's Australian Shares Fund produced an average annual return of 10.6% p.a (after fees).[17] The MySuper product, the Balanced option, has outperformed its performance objectives for five years and returned as at 30 June 2019; 7.9% 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/20190828/pdf/447y004zx70pn0.pdf
  3. "ASX Announcement: Quarterly FUM Announcement 1 October to 31 December 2019" (PDF). 17 January 2020. Retrieved 14 February 2020.
  4. "ASX Announcement: AEF Financial results for year ended 30 June 2019" (PDF). 28 August 2019. Retrieved 14 February 2020.
  5. "Managed Funds Performance and Returns - Australian Ethical". Australian Ethical - Super and Managed Funds. Retrieved 5 September 2018.
  6. Morningstar Multi-Horizon Report, Australian Shares Fund Large Caps, Annualised Returns from July 1998 to June 2018.
  7. "KPMG Super Insights: Membership growth by fund (2018)". Retrieved 12 July 2019.
  8. "Australian Ethical Charter - Australian Ethical - Super and Managed Funds". Australian Ethical - Super and Managed Funds. Retrieved 5 September 2018.
  9. "Australian Ethical Community Grants 2018". Australian Ethical - Super and Managed Funds. Retrieved 5 September 2018.
  10. "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.
  11. "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.
  12. "Australian Ethical Investment | Certified B Corporation". bcorporation.net. Retrieved 12 July 2019.
  13. Citation error. See inline comment how to fix.
  14. Australian Ethical’s 2018 Sustainability Report.
  15. "Australian Ethical Charter - Australian Ethical - Super and Managed Funds". Australian Ethical - Super and Managed Funds. Retrieved 7 September 2018.
  16. "Super Performance and Returns - Australian Ethical". Australian Ethical - Super and Managed Funds. Retrieved 12 July 2019.
  17. "Managed Funds Performance and Returns - Australian Ethical". Australian Ethical - Super and Managed Funds. Retrieved 12 July 2019.
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