Australian Ethical Australian Shares Fund

Product Name

Australian Ethical Australian Shares Fund

Issuer

Australian Ethical Investment

Category

Investment

Type

Fund or Trust

Target

Retail, Wholesale

Certified Since

2006

Asset Classes

Australian only equities

Markets

Australia, New Zealand

Investment Approaches

Negative Screening, Engagement and voting

It Includes:

  • Riaa icons 14 Education
  • Riaa icons 32 Green property
  • Riaa icons 12 Healthcare and medical products
  • Riaa icons 11 Impact investments
  • Riaa icons 10 Renewable energy and climate change solutions
  • Riaa icons 15 Social and sustainable infrastructure
  • Tree green background Sustainable land and agricultural management
  • Riaa icons 13 Sustainable transport
  • Riaa icons 31 Sustainable water
  • Investment2 More sustainable companies

It has some level of screening for:

  • Riaa icons 41 Alcohol
  • Riaa icons 56 Animal cruelty
  • Riaa icons 36 Armaments
  • Riaa icons 33 Fossil fuels
  • Riaa icons 42 Gambling
  • Riaa icons 45 Genetic engineering
  • Riaa icons 52 Human rights abuses
  • Riaa icons 38 Labour rights violations
  • Riaa icons 34 Logging
  • Riaa icons 50 Nuclear power
  • Riaa icons 99 Pornography
  • Riaa icons 35 Tobacco

Overview

Australian Ethical’s Australian Shares Fund offers investors the opportunity to invest in a diversified share portfolio of companies predominately listed on the ASX and selected on the basis of their social, environmental and financial credentials. The Fund utilises an active stock-picking management style with stocks selected for growth rather than income, with a bias towards smaller capitalisation stocks listed on the ASX. All stocks are chosen on the basis of relative value where we deem the risks are being adequately priced.


Description


Australian Ethical believe the more money doing good for the planet, the better. Since 1986 we have applied the 23 principles of the Australian Ethical Charter to invest in ethical and responsible initiatives that have a positive impact on the planet, people and animals while achieving competitive long-term returns. We avoid investments in corporations that engage in harmful practices such as coal, oil, weapons, tobacco, gambling and human rights abuses. The Charter not only influences our investment choices, but underpins every aspect of our business practices.

To implement the Ethical Charter, we apply industry-specific sustainability standards as well as thresholds for revenue earned from over one hundred positive, negative and neutral activities. For example, we won’t invest if a company earns any revenue from making weapons or tobacco products (zero threshold), but we allow some revenue from alcohol or fossil fuels if a company is positive in other ways. This allows us to invest in a company like Contact Energy which generates 80% of its electricity from renewables, falling back on gas when low rainfall reduces its hydro-power. Or an agricultural company which grows wheat for food but which sells up to 10% of its grain for beer brewing. We also have revenue thresholds to exclude companies which indirectly support negative products, for example a supermarket which earns more than 1% of revenue from tobacco sales.  

Some exclusions depend on the circumstances. For example, exclusion for genetically modified (GM) products depends on whether the GM products are used for food, energy or medicine. We exclude companies which create GM crops but we may invest in agricultural companies which purchase and grow GM crops. For breaches of labour law, we look at the seriousness of the breaches and action taken by the company to put things right. We exclude investment if there is an organisational culture which disregards worker entitlements and well-being.

Other products certified by the Responsible Investment Association Australasia (RIAA)

Australian Ethical Income Fund

Australian Ethical Superannuation Australian Shares option

Australian Ethical Diversified Shares Fund