Australian Ethical Balanced Fund

Product Name

Australian Ethical Balanced Fund

Issuer

Australian Ethical Investment

Category

Investment

Type

Fund or Trust

Target

Retail, Wholesale

Certified Since

2006

Asset Classes

Diversified / Multi-asset

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 fully excludes:

  • 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

The Australian Ethical Balanced Fund offers investors the opportunity to invest in a diversified portfolio of asset types and markets to reduce the volatility of returns. Asset classes include Australian and international equities, property, fixed income securities and cash.


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.

We’re open about the ethical positions we take to invest and advocate for companies to have a positive impact on the planet, people and animals. A company must meet our sustainability standards for what it does and how it does it. We won’t invest if a company earns any revenue from making weapons or tobacco products (zero threshold), but we allow limited revenue from alcohol or fossil fuels if a company is positive in other parts of its business. 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 to alcohol producers. We also exclude companies which indirectly support negative products, for example a supermarket which earns more than 1% of revenue from tobacco sales.

The Fund shall seek out investments which provide for and support:
  • the development of workers’ participation in the ownership and control of their work organisations and places 
  • the production of high quality and properly presented products and services 
  • the development of locally based ventures 
  • the development of appropriate technological systems 
  • the amelioration of wasteful or polluting practices 
  • the development of sustainable land use and food production 
  • the preservation of endangered eco-systems 
  • activities which contribute to human happiness, dignity and education 
  • the dignity and well-being of non-human animals 
  • the efficient use of human waste 
  • the alleviation of poverty in all its forms 
  • the development and preservation of appropriate human buildings and landscapes. 
The Fund shall avoid any investment which is considered to unnecessarily:  
  • pollute land, air or water 
  • destroy or waste non-recurring resources 
  • extract, create, produce, manufacture, or market materials, products, goods or services which have a harmful effect on humans, non-human animals or the environment 
  • market, promote or advertise, products or services in a misleading or deceitful manner 
  • create markets by the promotion or advertising of unwanted products or services 
  • acquire land or commodities primarily for the purpose of speculative gain 
  • create, encourage or perpetuate militarism or engage in the manufacture of armaments 
  • entice people into financial over- commitment 
  • exploit people through the payment of low wages or the provision of poor working conditions 
  • discriminate by way of race, religion or sex in employment, marketing, or advertising practices 
  • contribute to the inhibition of human rights generally. 

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

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Australian Ethical Fixed Interest Fund

Australian Ethical Income Fund

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Australian Ethical Superannuation Advocacy option

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Australian Ethical Superannuation Balanced (pension) option

Australian Ethical Superannuation Conservative option

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Australian Ethical Diversified Shares Fund

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