When you’re navigating share markets with elevated valuations, it pays to be different.
Our Emerging Companies Fund (the ‘Fund’) has a pulse on future-focused sectors like technology, healthcare and renewables, directing capital to small and microcap companies with high growth potential. We like companies that have global aspirations – with revenue streams and addressable markets considerably larger than Australia.
Specialist knowledge
Deep expertise in Australian growth industries like technology, healthcare and renewables.
Active growth
Actively managed with companies selected for their capital growth potential & guided by strict valuation discipline.
Proven track record
The Fund has returned 12.6% pa to investors since its inception, outperforming its benchmark.1
1 As at 29 February 2024 for the Australian Ethical Emerging Companies (Wholesale) Fund. Inception date: 30/06/2015. Benchmark: S&P ASX Small Industrials Index. Past performance is not a reliable indicator of future performance. Refer to our Managed Funds performance, Super performance, Pension performance and ETF performance for more detailed information on performance, including what we mean by "healthy" or "strong".
To provide long-term growth by investing in small capitalisation companies that meet our Ethical Criteria.
The Fund aims to significantly exceed the return of the S&P/ASX Small Industrials Total Return Index after taking into account management costs over a 7 year period.
Investment Strategy
The opportunity to invest in a diversified portfolio of shares in small capitalisation companies on the basis of their social, environmental and investment credentials.
The Fund utilises an active stock-picking management style with stocks selected for capital growth rather than income. All stocks are chosen on the basis of relative value where we deem the risks are being adequately priced.
The performance data is updated on a monthly basis.
Total returns are calculated:
using the sell (exit) price
net of management fees
gross of tax
as if distributions of income have been reinvested at the actual distribution reinvestment price
the actual returns received by an investor will depend on the timing, buy and exit price of individual transactions.
Figures showing a period of less than one year have not been adjusted to show an annual total return. Figures for periods of greater than one year are on a per annum compound basis.
Return of capital and the performance of your investment in the fund are not guaranteed. Past performance is not a reliable indicator of future performance.
Fund
Benchmark
-4.3%
-4.5%
-12.2%
-8.3%
-14.8%
-10.8%
-3.1%
1.1%
7.0%
6.8%
1.1%
2.2%
10.5%
6.3%
-
-
-
-
10.4%
6.3%
As at 28 Feb 2026
The performance data is updated on a monthly basis.
Total returns are calculated:
using the sell (exit) price
net of management fees
gross of tax
as if distributions of income have been reinvested at the actual distribution reinvestment price
the actual returns received by an investor will depend on the timing, buy and exit price of individual transactions.
Figures showing a period of less than one year have not been adjusted to show an annual total return. Figures for periods of greater than one year are on a per annum compound basis.
Return of capital and the performance of your investment in the fund are not guaranteed. Past performance is not a reliable indicator of future performance.
Investment commentary
Check out our latest fund commentary for the 12 months to December 31, 2025
Explore the case studies below to learn more about some of the places we're invested in.
Meridian Energy
Meridian Energy generates, trades and retails electricity from renewable energy sources such as wind and hydro power.
Meridian Energy
Meridian Energy generates, trades and retails electricity from renewable energy sources such as wind and hydro power.
Headquartered in Wellington, New Zealand, and with a presence in the UK, Meridian supplies electricity to homes, businesses and farms. Meridian’s existing power generation facilities include four wind farms across New Zealand and six hydro stations within the Waitaki hydro scheme which provides 16% of New Zealand’s electricity supply. Meridian further leveraged their renewable technology by designing and building a wind farm to power the Scott Base and McMurdo research stations on Ross Island in Antarctica.
Meridian is engaged in several new renewable electricity generation projects, with a target to build seven large-scale renewables and storage projects across New Zealand by 2030. These projects range from additional wind farms in Hawke’s Bay to an energy park comprised of battery storage and additional solar farms in Whangārei. Across its existing and pipeline projects, Meridian is contributing towards New Zealand’s target of 100% renewable electricity generation by 2030.
PEXA is a world-first digital settlement platform that has revolutionised the way we exchange property in Australia.
PEXA
PEXA (Property Exchange Australia) is a world-first digital settlement platform that has revolutionised the way we exchange property in Australia by providing quicker access to the proceeds of a sale and near real-time tracking on property settlements. PEXA's mission is to reduce the time and paperwork traditionally associated with conveyancing. This streamlined efficiency not only expedites processes but also translates into substantial time and cost savings for clients.
Amidst the pressing challenge of homelessness and housing stress in Australia, PEXA actively collaborates with entities like Homes for Homes, a social enterprise, to mobilise resources and allocate grant funds to community housing providers. This partnership is geared towards creating a sustainable impact by bolstering the supply of affordable and social housing.
PEXA’s innovative solutions and collaborations underline the company’s dedication to addressing critical challenges such as homelessness and housing stress, demonstrating the potential of businesses to make a meaningful impact on both their bottom line and the betterment of society and the environment.
ACL Healthcare has a commitment to patient well-being and sustainability, aligning with both ethical principles and long-term financial viability.
ACL Healthcare
Australian Clinical LaboratoryHealthcare is an ethical investment that stands out for its commitment to patient well-being and sustainability, demonstrating its alignment with both ethical principles and long-term financial viability.
Sustainable healthcare ensures long-term access to quality medical services while prioritising patient well-being. It safeguards health resources, minimises waste, and promotes holistic, enduring health outcomes. The company’s commitment to early disease detection, health education, and community engagement reduces the burden of chronic illnesses and promotes healthier living.
Reducing environmental footprint and promoting eco-friendly healthcare is at the forefront of what ACL Healthcare stands for. ACL Healthcare's green building designs, energy-efficient equipment, and investment in renewable energy sources reflect its commitment to environmental responsibility, contributing to a more sustainable healthcare industry.
With our investment in ACL Healthcare, Australian Ethical is supporting healthcare practices that prioritise patient health and well-being, while fostering a more sustainable and environmentally responsible healthcare sector.
Our ethical investment approach favours companies and portfolios with stronger sustainability characteristics. The sustainability indicators presented below are for the investment by this fund in listed shares at 30 June 2025 for which we have relevant sustainability data.
These listed shares are 92% of total investments of this fund, and the indicators are not applicable to the other investments of the fund.
42% more carbon intensive
The carbon intensity (tonnes of CO2 equivalent per dollar company revenue) for our listed share investments at 30 June 2024 is 42% higher than a mainstream share market benchmark(1,2)
2.6x revenue in sustainable solutions
These listed companies earn 2.6 times the revenue from sustainable solutions at 30 June 2024 than a mainstream share market benchmark(1,3)
More than 50x clean energy solutions
These listed share investments at 30 June 2024 have more than 50 times the investment in renewables and energy solutions than a mainstream share market benchmark(1,3)
Sustainable Solutions Revenue Breakdown
Below is the estimated annual revenue earned by these listed companies that has been identified as contributing to sustainability goals such as the Sustainable Development Goals. The Sustainable Development Goals were set by the United Nations as a blueprint on how to achieve a better and more sustainable future. Find out more at sdgs.un.org/goals.
This is a general indication only and relates only to 92% of the investments of this option. The revenue is calculated per $1M invested in these listed shares and based on shareholdings at 30 June 2024.
This information is of a general nature and is not intended to provide you with financial advice or take into account your personal objectives, financial situation or needs. The sustainability characteristics of companies we invest in is not a measure of the impact of your investment. Your investment decisions should take into account the financial, risk, fee and other characteristics of potential investments.
This information is only shown for those listed shares where we have the necessary sustainability data. The comparisons are with available data for shares in a general share market benchmark selected as an appropriate investment benchmark ("Benchmark shares").
There is more information about the calculation method and benchmark here
