Australian Ethical is an ethical wealth management company based in Sydney. Australian Ethical has $4.05 billion in funds under management and over 57,000 clients as at 30 June 2020. The company's flagship Australian Shares Fund has outperformed the average large-cap fund over the medium to long term. In 2018 Australian Ethical was the fastest growing super fund by member growth in Australia over five years. Since inception in 1986, Australian Ethical has invested according to its Ethical Charter. The Charter not only guides all investments but also underpins all elements of the business. For example, 10% of Australian Ethical's profits funds its Community Grants program. The company was a founding B Corp in Australia, and the first publicly listed company in Australia to achieve B Corp status. 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.
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. 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 to charitable organisations and social impact initiatives, through the Australian Ethical Foundation. Through its Community Grants initiative, Australian Ethical has donated over $2.5 million since the program started. 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.
Performance
In its 32-year history, Australian Ethical's funds tend to concentrate on long term returns. In the 10 years to 30 June 2019 the company's Australian Shares Fund produced an average annual return of 10.6% p.a. 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.
