Four Australian Ethical funds earn Lonsec “Recommended” rating
Mike Murray
Australian Ethical Investment Limited (Australia Ethical) has today announced that four of its funds have received a ‘Recommended’ rating by independent ratings’ house Lonsec Research.
Australian Ethical offer a range of active Australian equities funds that offer investors access to equities, including via an SMA or ETF, and helps advisers incorporate ethics into their preferred advice model.
The ‘Recommended’ rating – which indicates Lonsec has a strong conviction the financial product can generate risk-adjusted returns in line with a fund’s relevant objectives – was awarded to four of Australian Ethical’s funds, including:
- Australian Shares Fund (Wholesale)
- Emerging Companies Fund (Wholesale)
- Australian Shares SMA Portfolio, and
- High Conviction Fund (Managed Fund and ETF: AEAE).
Head of Domestic Equities Mike Murray says Australian Ethical is pleased with Lonsec’s assessment of its funds, noting the High Conviction Fund has been rated for the first time.
“Australian Ethical’s High Conviction Fund is managed using the same team and research process as our other active domestic strategies, with a focus on mid and larger capitalised industrial companies that meet our strict Ethical Charter. Importantly it is also available as an ETF under the ticker code AEAE, meaning that it can be bought on an exchange like ordinary shares, further expanding the range of choices for committed ethical investors.”
“Lonsec stated a ‘strong level of conviction in Australian Ethical’s investment team’, while also noting the ‘invaluable support provided by Dr Stuart Palmer and our Ethics Research Team’, who offer ‘real-time detailed research and engagement with companies on ethical matters’.”
Also ‘Recommended’ was Australian Ethical’s Emerging Companies Fund (Wholesale), which is primarily based on small-cap companies, and typically provides niche exposures to sustainable sectors including healthcare, technology, and renewable energy.
Lonsec notes that ‘Australian Ethical is a credible, true-to-label ethical investment manager that has delivered strong performance over medium and longer terms’.
This is the fourth consecutive year Australia Ethical’s Australian Shares Fund (Wholesale) has received a Recommended rating, with Lonsec noting it has achieved ‘decent outperformance over the medium- to longterm, despite recent headwinds’.
“Pleasingly, Lonsec has also given our Australian Shares SMA Portfolio a ‘Recommended’ rating, which is a strong result following the Fund’s launch in March 2020. This is an actively managed, concentrated product that invests in a portfolio of 15-30 companies selected from our flagship Australian Equities’ products,” said Mr Murray.
“Overall, Lonsec views the strength of our commitment to ESG integration to be ‘stronger than our peers’, given our ‘strong policy framework and clear public positioning’.”
“Our vision is for a world where capital is always invested ethically in pursuit of this vision, and we now offer a range high quality and performance-focused options in active domestic equities that are both accessible and true to label, with a focus on positive long-term outcomes for the planet, people and animals,” said Mr Murray.
