A managed fund is a professionally managed investment portfolio. They can include investments in shares, property, fixed interest, cash and more.
There are a number of benefits of investing in a managed fund:
- Easy to manage - Instead of making a number of small investments (eg buying many individual companies' shares) you can hold just one investment, where you purchase 'units' in the managed fund that holds many shares and/or other investments
- Easy to diversify - Diversification means 'not putting all your eggs in one basket'. With a managed fund you can lower risk, by investing across asset classes (eg shares, property), as well as within asset classes (eg purchasing many different companies' shares)
- Easy to get started - You can start your Australian Ethical managed fund with as little as $1,000 with a regular investment plan.
Good ethics are one thing, good returns are another. Here are just some of the reasons why ethical investing makes good financial sense:
- Demand for ethical and sustainable products and services - like those many of the companies we invest in provide - is increasing.
- The renewable energy sector has a much more promising future than fossil fuels.
- Investing in sustainable companies allows investors to avoid being financially impacted by disasters associated with unsustainable companies, such as a water contamination disaster caused by Coal Seam Gas extraction (we avoid investments in CSG).
Performance: Busting the myths
Two of the most common myths of ethical investing, are that you have to sacrifice returns and that it’s riskier. Neither of these myths are true.
* Past performance is not a reliable indicator of future performance. Returns are to end of 2012, and are calculated gross of any administration and investment management fees, tax, and other costs, and as if distributions of income had been reinvested at the actual distribution reinvestment price.
‘Market Index’ is the S&P/ASX300 index.
‘Ethically Screened Index’ is a theoretical index of the stocks within the S&P/ASX300 that pass Australian Ethical’s positive and negative screens.
Our Ethical Charter: Unchanged since 1986
The Australian Ethical Charter is a series of statements that guide both the positive side (investments we seek out) and the negative side (investments we avoid) of our ethical approach.
We are proud to say that it has not changed since our inception in 1986.
To the right is a summary of the main points of our charter.
We seek out positive investments that support: People Quality Sustainability
We avoid investments that cause unecessary harm to: People Animals Society Environment
Active vs Passive investment management
Many other funds don't select shares that they expect to perform well financially; rather they invest in a pool of shares without looking at each companies financial credentials - this is called passive funds management. In contrast, active managers like Australian Ethical only invest in shares we expect will perform well financially.
Of course, we don't stop there! All of the companies we invest in must pass our strict positive and negative ethical screens.
Whether you need to invest for the short or the long-term, we have a range of investment options to suit your financial goals. You can select one option or spread your investment across multiple options:
|Investment option||Suitable if you...|
|Smaller Companies Trust|
|Larger Companies Trust|
|International Equities Trust|
|Climate Advocacy Fund|