Best Innovation – ESG Trailblazer

GOLD WINNER AUSTRALIAN ETHICAL This fund aims to make the planet a better place

With Facebook posts that read, “Been with you for over 20 years … keep going!” and “I’ve invested with Australian Ethical for over 30 years and the investment returns have always been really good …”, it’s clear Australian Ethical has been successfully supporting longtime advocates.

It was shortlisted as a finalist in two of our ESG categories – Best ESG Super Product and Best Australian Share ESG Fund – and we believe it deserves special recognition.

“Australian Ethical Investment is the investment manager and super fund that showed most of the others how to do it. Without them, ethical and ESG investment in Australia probably would not have happened,” says Alex Dunnin, Rainmaker’s head of research.

On top of this, it is Australia’s 10th best super fund for being the most consistently high-achieving, risk-adjusted super fund. It ranks in the top 10 for MySuper, balanced and capital stable products. Its MySuper product over one and three years is ranked second and third respectively, and its balanced product is ranked in the top 10.

Australian Ethical was formed in 1986 when a group of like-minded friends pooled their savings and invested them in environmentally and socially responsible investments.

Their purpose was to invest for a better world and in many ways the pandemic has validated their approach as more people seek to make a positive impact with their money while generating returns.

Now, with more than $4.3 billion in funds under management and 60,000 investors and super members, the fund saw a massive jump in net flows over the past financial year.

“Today, the global urgency for businesses and investors to play a bigger societal role is difficult to ignore; and with their 2020 vision more people are starting to see what we have been able to see clearly for some time: that good does better,” says Maria Loyez, Australian Ethical’s chief customer officer.

“We think what makes us different from other ESG managers is that investing ethically isn’t just something we do, it’s everything we do. All our products are incentivising the growth of ethical and sustainable businesses and building a better world.”

Like other ethical funds, Australian Ethical also has a focus on giving back to the community and each year it donates 10% of its after-tax profits to charities and social impact initiatives through the Australian Ethical Foundation.