Ethical Super
ONE EXAMPLE
You don’t need to sacrifice performance to achieve your ethical and ESG goals if your fund manager is backed by top research and innovative enough to see the opportunities.
Australian Ethical’s Smaller Companies Trust achieved returns net of fees of 9.9 per cent per annum since its inception in 1994, one-third more than the index.
Being one of the longest serving ethical funds also gives it a sharp edge in many of the new technologies it targets, experience that helps it positively find new opportunities for its portfolio rather than having to just rely on negatively screening out what it doesn’t like.
Investors looking for a fund consistent with their philosophies that also delivers where it counts should have a good look at the Australian Ethical’s Smaller Companies Trust.
ETHICAL INVESTMENT – or “Responsible Investment”
Responsible Investment is the preferred approach for an increasing number of institutional and individual investors as an alternative to conventional investment practices evidenced by:
- 10% increase in managed responsible investment portfolios
- 50% increase in responsibly invested financial adviser portfolios
- 29% increase in Australian signatories to the Principles of Responsible Investment
The Responsible Investment Association of Australia’s benchmark report shows that not only is responsible investment a smart choice, it largely outperforms the average mainstream funds over one, three, five and seven years for Australian shares and international shares. Balanced growth managed funds outperformed mainstream funds over five and seven years.
“We continue to see world changing events in areas which are deeply interconnected such as climate change, energy security, water scarcity, food shortages and environmental risk which are all driving responsible investment. These issues have serious implications for societies, economies and the entire investment chain. The 2010 Benchmark report figures exemplify the disappointment experienced by more and more people about the inability of traditional financial models to recognise the inherent impact of environmental, social and governance issues on investments. Taking these issues into account is both profitable and smart,” said Louise O’Halloran, Executive Director of RIAA. “This year’s study is the most expansive edition of RIAA’s benchmarking.
www.responsibleinvestment.org
Another example. Also a blog post on 14/9/11
Global and Deep Green
Before you click. Remember our deal. Just because I show you something exists does not mean advising you to invest in it.
This link will take you to a summary or profile of a real front line deep green managed investment trust and a very clear example of “ethical investing”. That is the fund has a clearly defined “ethic” . All of the skills of investment management are used. Spreading the portfolio over many companies and industries and places so that, just like a good Permaculture garden, it is not a “monoculture” . There is always something to harvest and it does not get wiped out by one virus. All good managed funds do this. It is a risk management process that is wise enough to know that no one can pick the one winner other than in hindsight.
But the main reason I am posting this is so you can read about the ethical objectives of the fund. Note that the name implies it is not a half baked attempt. Exclude means to exclude, not just to be better or less bad than others. Note that there are things they seek TO invest in as well as things they avoid.
In case you are wondering, this is not a super fund, but it is a managed investment that a super fund could choose to invest in.
Once more before you click. Not a recommendation or advice. Just here for an education example.
