Limited exposure to fossil fuel companies has positively impacted the performance of Australian Ethical’s balanced and growth funds, the super fund says.
Australian Ethical’s Balanced Fund, its MySuper option, has delivered a 10.5 per cent return in the year to 30 June. Its growth fund achieved a return of 11.5 per cent, while its high growth fund delivered a 12.8 per cent.
Australian Ethical deputy chief investment officer John Woods said the fund’s performance was 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,” said Woods.
“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.”
Woods said the fund’s ethical approach has enhanced 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,” said Woods.
Woods said that the fund’s disciplined process had 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,” he said.
The super fund said it also remains focused on influencing positive change within the companies it invests in and across policy and the economy.
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 per cent per annum return over 10 years to 30 June 2025.
The Fund is weighted 62.5–82.5 per cent to growth assets and 17.5–37.5 per cent to defensive assets.
It aims to achieve returns of 3.25 per cent above inflation after investment fees and taxes over a 10-year period.
