31 March 2025
Australian Ethical is one of Australia's leading ethical fund managers. By investing responsibly in well-managed ethical companies, we deliver competitive financial performance to our clients and positive change to society and the environment. Since our inception in 1986, our Ethical Charter has guided all investment decisions and underpinned our business practices. Every year 10 per cent of our profits* are distributed to charitable organisations and social impact initiatives through The Australian Ethical Foundation.
To provide long-term growth focusing on Australian companies that meet our Ethical Criteria. The Fund aims to significantly exceed the return of the blended index after taking into account management costs over a 7 year period.
The opportunity to invest in a diversified share portfolio of companies predominately listed on the ASX and selected on the basis of their social, environmental and financial credentials. The Fund utilises an active stock-picking management style with stocks generally selected for growth rather than income, with a bias towards smaller capitalisation stocks listed on the ASX. All stocks are chosen on the basis of relative value where we deem the risks are being adequately priced.
| 1m | 3m | 6m | 1y | 3y | 5y | 10y | Since inception | |
|---|---|---|---|---|---|---|---|---|
| Fund | -4.0% | -4.1% | -4.9% | 4.0% | 2.8% | 13.8% | 9.2% | 12.1% |
| Composite Benchmark** | -3.3% | -2.9% | -3.6% | 2.6% | 5.3% | 13.2% | 7.9% | 9.5% |
| S&P/ASX Small Indust. | -6.7% | -6.0% | -6.4% | -3.8% | 0.4% | 8.6% | 5.4% | 7.5% |
| CY 2024 | CY 2023 | CY 2022 | CY 2021 | CY 2020 | |
|---|---|---|---|---|---|
| Fund | 17.9% | 11.0% | -17.1% | 15.0% | 21.0% |
| Composite Benchmark** | 11.4% | 12.1% | -1.8% | 17.5% | 1.7% |
| S&P/ASX Small Indust. | 12.1% | 11.4% | -21.8% | 13.7% | 5.9% |
Portfolio diversification: Diversify your portfolio by investing in companies and sectors not well covered by other fund managers and brokers.
Help build a better world: Invest in the new, low‐carbon economy, fund medical and technology breakthroughs, efficient transport and more.
Promote human rights: We strive to avoid any investment in companies involved in the poor treatment of asylum seekers or the exploitation of workers through poor working conditions.
The Australian Shares Fund (Wholesale) declined 4.1% net of fees in the quarter ended 31 March 2025, underperforming its benchmark, which fell 2.6%. The Retail class fell 4.2%. This marked the weakest quarterly performance for Australian equities in nearly three years.
Markets fell to seven-month lows as global uncertainty and a soft domestic earnings season weighed on sentiment. Renewed Trump-era tariffs drove volatility, creating opportunities for our active stock-picking approach.
The Fund held elevated cash levels ahead of the downturn, allowing selective deployment into quality companies at more attractive valuations. During the quarter, we initiated positions in CSL and Siteminder.
The Materials sector was the largest detractor, driven by the Fund’s underweight to gold stocks, which rallied on geopolitical tensions and now comprise 17% of the Small Ordinaries benchmark. Technology also detracted, reflecting broader risk-off sentiment.
Conversely, Financials were a strong contributor, led by our overweight to Medibank and NIB Holdings. NIB outperformed after reaffirming earnings guidance and receiving approval for premium increases to help offset claims inflation. Healthcare also added value, with Nanosonics rallying on approval for its new Coris device. This helped offset weakness from Opthea, which faced disappointing trial results.
Domain contributed positively after receiving a takeover offer from US-listed Co-Star, revised from $4.20 to $4.43 in March. The Fund also exited its position in Bigtincan following its scheme implementation deed with Vector Capital.
The Australian Shares Fund (Wholesale) declined 4.1% net of fees in the quarter ended 31 March 2025, underperforming its benchmark, which fell 2.6%. The Retail class fell 4.2%. This marked the weakest quarterly performance for Australian equities in nearly three years.
Markets fell to seven-month lows as global uncertainty and a soft domestic earnings season weighed on sentiment. Renewed Trump-era tariffs drove volatility, creating opportunities for our active stock-picking approach.
The Fund held elevated cash levels ahead of the downturn, allowing selective deployment into quality companies at more attractive valuations. During the quarter, we initiated positions in CSL and Siteminder.
The Materials sector was the largest detractor, driven by the Fund’s underweight to gold stocks, which rallied on geopolitical tensions and now comprise 17% of the Small Ordinaries benchmark. Technology also detracted, reflecting broader risk-off sentiment.
Conversely, Financials were a strong contributor, led by our overweight to Medibank and NIB Holdings. NIB outperformed after reaffirming earnings guidance and receiving approval for premium increases to help offset claims inflation. Healthcare also added value, with Nanosonics rallying on approval for its new Coris device. This helped offset weakness from Opthea, which faced disappointing trial results.
Domain contributed positively after receiving a takeover offer from US-listed Co-Star, revised from $4.20 to $4.43 in March. The Fund also exited its position in Bigtincan following its scheme implementation deed with Vector Capital.