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 investors with a balance between capital growth and a moderate level of income through a diversified portfolio of assets that meet our Ethical Criteria. The Retail Fund aims to achieve returns 3.00% above inflation after management costs over a 10 year period. The Wholesale Fund aims to achieve returns 3.50% above inflation after management costs over a 10 year period.
The opportunity to invest in a diversified portfolio of asset types and markets to reduce the volatility of returns. Asset classes include, but are not limited to, Australian and international shares, property and fixed income securities.
| 1m | 3m | 6m | 1y | 3y | 5y | 10y | Since inception | |
|---|---|---|---|---|---|---|---|---|
| Fund | -2.6% | -1.4% | 1.4% | 4.5% | 4.5% | 7.7% | 5.7% | 6.6% |
| Benchmark | - | 2.0% | 4.9% | 8.1% | 7.2% | 9.2% | 6.9% | 7.4% |
| CY 2024 | CY 2023 | CY 2022 | CY 2021 | CY 2020 | |
|---|---|---|---|---|---|
| Fund | 11.6% | 10.0% | -10.3% | 13.2% | 7.5% |
| Benchmark | 11.1% | 10.9% | -4.8% | 13.4% | 3.6% |
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 Balanced Fund (Wholesale) fell -1.2% net of fees in the quarter ending 31 March 2025, underperforming its SAA benchmark return of -0.3%. The Retail Fund returned -1.4% net of fees over the same period.
In local currency terms, US equities—dominating global markets—were among the weakest performers (S&P 500 -4.4%) as 2024's optimism around US exceptionalism and tech resilience gave way to rising isolationism and the DeepSeek flashpoint. In contrast, European equities (MSCI Europe +6.2%) rallied on stronger economic data, hopes for peace in Ukraine, and expectations of increased government spending amid tensions with the US.
The Funds reduced US equity exposure, citing stretched valuations, and benefited from an active allocation to Hong Kong (MSCI Hong Kong +4.6%).
In Australia, equities lagged (S&P/ASX 300 -2.9%) amid global uncertainty and weak earnings. Investors rotated into defensive assets such as gold miners (All Ordinaries Gold Index +31.2%) and away from growth stocks like tech (All Technology Index -12.4%). The Funds’ domestic equities allocation underperformed due to zero exposure to gold miners and an overweight in tech. However, current market dislocations have opened opportunities to buy quality companies at more attractive valuations.
Fixed income offered protection during the risk-off environment (Bloomberg Ausbond Composite +1.3%, Global Aggregate +1.1%), with bond rallies in most regions except Japan and Europe—where rising rates and spending drove yields higher. The Funds’ underweight to European government bonds contributed to outperformance, while global investment grade credit slightly lagged its benchmark. Overall, fixed income allocations outperformed.