Ethical investments trump market and peers

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New research indicates the performance of an ethical fund is booming, beating out its peers and most of the market.

Australian Ethical CIO David Macri said the results from a 2014 Mercer survey of managed funds indicate its investment philosophy is very successful.

“We have provided consistently high returns for our clients from a sustainably-focused investment process,” he said. “What we have shown is that our performance is consistently better than both the market and most of our peers.”

The Australian Ethical smaller companies trust ranked second over one and three months, seventh over 12 months, and first over seven years. The larger companies trust scored third over six months, first over one and two years, and fourth over 10 years. The international equities trust was third over 12 months; and the advocacy trust ranked first over six months.

Macri said the positive longer term performance is testament to Australian Ethical’s investment philosophy.

“We have applied a rigorous discipline to our stock selection and portfolio construction. The results prove that we have added value consistently over a full investment cycle, with taking undue risk,” he said. “While our short term performance will tend to vary significantly with the market and indeed our peers, investors need to be mindful of the long term when investing in equities, in particular small caps given the heightened level of volatility.”
 
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