Australian Ethical MySuper delivers 10.5% demonstrating the strength of ethical investing
John Woods
Australian Ethical’s Balanced Fund, its MySuper option, delivered 10.5%1 (after fees) in the year to June 30, 2025, demonstrating the strength of its ethical investment approach in the face of challenging market cycles.
Australian Ethical’s Growth Fund delivered 11.5%1, and its High Growth Fund delivered 12.8%1. All Australian Ethical’s super options are certified Sustainable Plus by the Responsible Investment Association of Australasia[2].
Australian Ethical Deputy CIO John Woods said, “Our performance is proof that ethical investment can generate strong returns while enabling our members to invest in line with their values. “It’s pleasing to see that our fund performance has been positively impacted by our limited exposure to fossil fuel companies. As pioneers of Australia’s ethical investing movement, we go further to ensure our members’ retirement savings are invested to deliver the future they want for themselves and their world.
“Our ethical approach enhances due diligence and risk management, adding additional protection to the portfolio through periods of market volatility. It also means we favour future-focused investments that in line with our Ethical Charter seek to do good by people, animals and planet, and importantly that will have a place in our world for many decades to come.”
In addition to the performance benefit from the limited exposure to resources and fossil fuels, disciplined processes led the team to trim overvalued holdings and invest in higher-quality opportunities across sectors and asset classes. The team has also identified alternative defensive exposures, bolstered allocations to private markets, and actively managed fixed income amid public market volatility.
Australian Ethical uses its position as an investor on behalf of its members to influence the companies it invests in, policy, and the economy, to encourage positive change.
In the last financial year, its ethical stewardship program focused on engaging with companies like QBE Insurance and Westpac to encourage these financial institutions to switch off financing to new fossil fuel projects and encourage the companies towards a net-zero future.
Over the long term, Australian Ethical’s Balanced Fund delivered a 6.8% p.a. return over 10 years to June 30, 2025[1]. The Fund is weighted 62.5-82.5% growth assets and 17.5-37.5% defensive assets. It aims to achieve returns of 3.25% above inflation after investment fees and taxes over a 10-year period.
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