SIGNIFICANT EVENT NOTICE
Changes to the Advocacy Fund from 1 October 2021
From 1 October 2021 the Advocacy Fund, along with other changes, will be known as the High Growth Fund. You can find a copy of the communication sent to existing retail investors here and existing wholesale investors here.
One of the key changes is that the fund will now be invested in additional asset classes including unlisted property and alternative assets. See below for further details on what these include:
Unlisted property assets
Unlisted property holdings are investments in property assets. The unlisted property asset class is included in the fund’s portfolio for its income and growth characteristics, in addition to providing diversification benefits.
Alternative assets
Alternative assets cover a wide range of investments that are not considered traditional assets. Some examples include Private Equity, Venture Capital and Infrastructure. These types of investments provide diversification because they aren’t strongly correlated with the performance of traditional assets.
Our advocacy work continues
The Advocacy Fund is changing but rest assured that our advocacy work isn’t. Australian Ethical continues to find opportunities to advocate for change with companies that we invest in, ones that don’t meet our Ethical Charter that we hold nominal holdings for, and companies we don’t invest in.
We also engage with government on policy issues relating to climate and biodiversity, human rights and animal protection. You can see examples of our recent advocacy work here.
Further details on changes to the fund
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Current Disclosure |
New Disclosure |
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Fund name |
Advocacy Fund |
High Growth Fund |
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Management fee (changes to Wholesale Fund only) |
0.95% p.a. (Wholesale Fund) |
0.90% p.a. (Wholesale Fund) |
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Investment return objective |
To provide long-term growth through investment in listed companies on Australian and international stock exchanges that meet the Australian Ethical Charter. A small number of shares which fail to meet the charter may be purchased from time to time to allow advocacy activities to progress. These additional shares will not materially affect the Fund's investment returns. |
It aims to achieve returns of 4.5% p.a. above inflation (after management costs over the long term). |
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Recommended minimum timeframe |
7 years |
10 years |
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Strategy |
The opportunity to invest in a diversified share portfolio of Australian and international companies, which meet the Australian Ethical Charter. Generally, all Australian and New Zealand investments will have a market capitalisation greater than the 200th ranked stock listed on the ASX. As an advocacy fund, one of the main purposes of the Fund is to engage directly with companies to pursue improved corporate behaviours in line with the Australian Ethical Charter |
The Fund invests primarily in growth assets such as Australian and international shares, unlisted property and alternative assets.
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Mix of asset classes and strategic ranges |
Current Disclosure |
New Disclosure |
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Asset class |
Ranges |
SAA |
Ranges |
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Australian and New Zealand Shares |
60% – 80% |
45% |
40% – 60% |
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International Shares |
20% – 30% |
35% |
20% – 60% |
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Cash |
0% – 10% |
5% |
0% – 10% |
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Alternatives* |
N/A |
10% |
0% – 20% |
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Property* |
N/A |
5% |
0% – 20% |
*up to 20% in unlisted assets