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In the ever-evolving landscape of ethical investment, Australian Ethical stands tall as a leading player, championing principles of sustainability and social responsibility. Offering a diverse range of investment options, Australian Ethical aligns with Environmental, Social, and Governance (ESG) principles, presenting investors with avenues to not only grow their wealth but also make a positive impact on the world.
Understanding Australian Ethical Investment Options
Australian Ethical provides investors with a plethora of investment options tailored to suit varying risk profiles and investment objectives. From managed funds to superannuation funds, each avenue is carefully crafted to reflect the values and ethics of the investor. By aligning investments with personal values, individuals can ensure that their financial endeavors contribute to causes they believe in, fostering a sense of purpose alongside potential financial gains.
Exploring Managed Funds by Australian Ethical
Managed funds offered by Australian Ethical present investors with a diversified portfolio, meticulously curated to cater to different risk appetites. This diversification not only spreads risk but also opens avenues for potential growth across various sectors and industries. The flexibility inherent in these funds allows investors to customize their portfolios according to their preferences, ensuring a personalized approach to ethical investing.
Best-performing ethical investment funds
| Fund Name | Return | Description |
| eInvest Future Impact Small Caps Fund (IMPQ) | 37.80% | Invests in Australian and New Zealand listed stocks contributing positively to environmental and societal issues, aiming for long-term capital growth. |
| Betashares Global Sustainability Leaders ETF – Currency Hedged | 27.84% | Actively excludes companies engaged in unethical activities, focusing on ‘climate leaders’ in the international tech and fintech sectors. The fund is hedged to the AUS dollar to minimize currency fluctuations. |
| Intelligent Investor Ethical Share Fund (Managed Fund) (INES) | 24.62% | Offers a diversified selection of Australian company stocks, prioritizing companies with low risk and sustainable investments. |
| Russell Australian Responsible Investment (RARI) | 23.02% | Provides exposure to a responsible investment portfolio by investing in ethical shares and trusts on the ASX, committed to the UN’s principles of responsible investment. |
| SPDR S&P/ASX 200 Esg (E200) | 21.10% | Aims to match returns of the S&P/ASX 200 ESG, an ethical and responsible alternative to the ASX 200, investing predominantly in Australian equities. |
| Vanguard Ethically Conscious International Shares (VESG) | 20.59% | Enables diversification into international companies listed in developed countries, screening out sectors like mining, fossil fuels, tobacco, gambling, and nuclear power. |
| VanEck Vectors MSCI Australian Sustainable Equity ETF (GRNV) | 16.54% | Offers access to a diversified portfolio of Australian companies screened for ethical considerations, focusing on materials, financials, real estate, industrials, and healthcare sectors. |
| VanEck Vectors MSCI International Sustainable Equity (ESGI) | 16.22% | Focuses on ethical investments on the global stage, screening out companies involved in fossil fuels, oil & gas, or other unethical activities, investing in tech, consumer goods, financials, and healthcare sectors. |
| Vanguard Ethically Conscious Australian Shares ETF (VETH) | 14.86% | Invests in ASX-listed stocks, excluding companies involved in nuclear power, fossil fuels, tobacco & gambling, and weapons manufacturing, with additional screening against controversy. |
Delving into Superannuation Funds by Australian Ethical
For individuals planning for retirement, Australian Ethical offers superannuation funds designed to align with long-term investment strategies. Beyond financial security, these funds integrate ethical considerations into retirement planning, acknowledging the importance of sustainable and socially responsible investments in securing a prosperous future. By prioritizing ethical factors in retirement planning, investors can build a nest egg that reflects their values while safeguarding their financial well-being.
Optimal returns from socially responsible superannuation
- Catholic Super Future Focus Option:
This investment option, provided by Catholic Super, achieved an impressive return of 11.20% in the past year. It’s designed for individuals who prioritize sustainable and ethical investing while aiming for strong financial performance. - Australian Ethical Balanced Option:
Australian Ethical’s Balanced Option aims to balance financial returns with ethical considerations. Over the past year, it delivered a return of 9.20%. While its 5-year return stood at 6.30%, over a decade, it provided investors with a return of 7.00%. - Hostplus Socially Responsible Investment Option:
Hostplus offers a Socially Responsible Investment Option that aligns with investors’ values. Over the past 5 years, it delivered a return of 7.30%, reflecting its commitment to socially responsible investing. Furthermore, its 10-year return stands at a commendable 9.30%. - Aware Super Socially Conscious Balanced Option:
Aware Super’s Socially Conscious Balanced Option aims to deliver solid returns while investing in companies that align with ethical and social values. Over the past decade, it achieved a return of 8.40%, reflecting its long-term commitment to sustainable investing practices. - UniSuper Ethical Sustainable Option:
UniSuper’s Ethical Sustainable Option is designed for investors seeking ethical investment opportunities with a focus on sustainability. Over the past 10 years, it provided investors with a return of 8.20%, demonstrating its ability to generate competitive returns while adhering to ethical principles.
Ethical Screening Criteria Applied by Australian Ethical
At the core of Australian Ethical’s investment philosophy lies a stringent ethical screening process. This process entails the exclusion of companies engaged in activities deemed harmful to society or the environment, such as those involved in fossil fuels, tobacco, and nuclear power. Instead, Australian Ethical focuses on investing in companies that uphold principles of sustainability and social responsibility, thereby fostering positive change through investment decisions.
Excluded Industries and Activities
Australian Ethical maintains a comprehensive list of excluded industries and activities, each exclusion rooted in a commitment to ethical principles. By avoiding investments in sectors known for their detrimental impact on society and the environment, such as fossil fuels and tobacco, Australian Ethical ensures that investor funds are channeled towards industries aligned with sustainable development goals. The impact of these exclusions extends beyond financial returns, contributing to a more sustainable and ethical investment landscape.
Focus on Positive Impact Investments
Australian Ethical’s dedication to positive impact investing is evident in its support for companies and industries that champion sustainability and social responsibility. By investing in businesses driving positive change, Australian Ethical not only seeks financial returns but also strives to create tangible social and environmental benefits. This emphasis on positive impact investing underscores the transformative power of ethical investment in shaping a more sustainable future.
Performance of Australian Ethical Funds
Despite prioritizing ethical considerations, Australian Ethical funds have demonstrated competitive performance within the ethical investment space. Through a combination of strategic investment decisions and a commitment to long-term sustainability, these funds have garnered recognition for their ability to deliver both financial returns and positive societal impact. By balancing ethical principles with financial performance, Australian Ethical sets a benchmark for responsible investing practices.
Transparency in Investment Practices
Australian Ethical places a premium on transparency, providing investors with clear insights into where their money is invested and the impact of their investments. Through open communication channels and regular reporting mechanisms, investors can track the progress of their investments and understand the broader implications of their financial decisions. This commitment to transparency fosters trust and accountability, reinforcing Australian Ethical’s reputation as a reliable steward of investor capital.
Case Studies: Success Stories in Ethical Investing
Real-life examples showcase the tangible benefits of ethical investing, highlighting the positive outcomes achieved through Australian Ethical’s investment approach. From companies driving innovation in renewable energy to initiatives promoting social inclusion, these success stories inspire investors to make a meaningful impact through their investment choices. By sharing these narratives, Australian Ethical empowers individuals to align their financial goals with their values, creating a ripple effect of positive change.
Challenges and Considerations in Ethical Investing
While ethical investing offers numerous benefits, it also presents challenges that investors must navigate. Balancing financial objectives with ethical considerations requires careful deliberation, as does navigating the complexities of the ethical investment landscape. By acknowledging these challenges and offering strategies for addressing them, Australian Ethical equips investors with the knowledge and tools needed to make informed decisions that align with their values.
Guidelines for Ethical Investment Decision Making
To assist individuals interested in ethical investing, Australian Ethical provides practical guidelines for making ethical investment decisions. These guidelines emphasize the importance of conducting thorough research on companies and industries, as well as seeking guidance from financial advisors specializing in ethical investment strategies. By adhering to these principles, investors can confidently navigate the ethical investment landscape and make choices that reflect their values and aspirations.
Impact of Ethical Investing on Society and the Environment
Ethical investing has far-reaching implications beyond financial returns, contributing to positive social and environmental outcomes on a global scale. By directing capital towards sustainable and socially responsible initiatives, investors play a pivotal role in addressing pressing issues such as climate change and social inequality. Australian Ethical recognizes the transformative power of ethical investing in driving systemic change and advocates for a collective effort to create a more equitable and sustainable future.
The Bottom Line
In conclusion, Australian Ethical offers a compelling framework for ethical investment in Australia, encompassing a diverse range of investment options aligned with ESG principles. By prioritizing sustainability and social responsibility, Australian Ethical empowers investors to make a positive impact while pursuing their financial goals. As individuals embrace ethical investing opportunities, they contribute to a more equitable and sustainable future, paving the way for a better world for generations to come.
