BEST GREEN SUPER FUNDS

GOLD WINNER AUSTRALIAN ETHICAL

It’s not just members who benefit from an ethical approach to investing

Dark green fund manager Australian Ethical, with a 32-year track record, has taken out the top award for its balanced super fund, which seeks out companies that will have a positive impact on the environment as well as screening out harmful ones.

Australian Ethical takes a principled stand about its investing. For example, in May 2018 it sold out of AMP after the banking royal commission revealed that the financial services giant had been charging fees for no service and had misled the regulator ASIC.

Australian Ethical invests in renewable energy, waste management, recycling, health and wellbeing companies, screening out businesses involved in cruelty to animals and many other environmental, sustainable and governance (ESG) criteria. It also donates 10% of its profits to not-for-profit organisations and in the 2017-18 financial year it gave $360,000 to 19 local and global organisations such as the Australian Conservation Foundation, Environs Kimberley and Sierra Leone – One Girl. Cutting fees over the years, from 1.74% in 2015 to 1.21% in 2018, has helped make the fund better value.

Local Government Super Balanced Growth has been a winner in these awards for six years but moved to second place this year. LGS invests its entire $11 billion of assets along ESG lines and screens out companies involved in tobacco, gambling, armaments, old growth forests and high carbon-sensitive sectors such as coal mining, coal-fired utilities and oil tar.