Australian Ethical Investmentcan truly be counted as one of the veterans of the boutique funds management movement, entering its 18th year in 2004. The company was originally founded in 1986, before going public with a trust three years later. The group then listed as a public company in December 2002.
And the recent rising popularity of boutiques in the market has only been good for business, says Australian Ethical marketing manager, James Thier.
“It takes a period of time to show our credentials and performance, but increasingly advisers are taking note of that, especially as the marketplace becomes more ethically attuned. The adviser and planning networks have seen that people don’t have to sacrifice returns,” Thier says.
The latest funds under management figures from Assirt show the group is currently past the $350 million mark, while its trusts and super products have also received accolades for performance over recent years.
Australian Ethical currently holds four unit trusts, and a super fund with four strategies, both on the accumulation and pension side.
According to Thier, the group’s Australian Equities Balanced Trust has featured among the top balanced trusts across all multi sectors for the last one, three and five years, and has been a best performer for most of its history.
The gross annual performance to the year November 30, 2003, for the group’s Equities Pension Strategy almost tipped $27 million, and the Accumulation and Rollover Ethical Equities Strategy passed $22 million, as did the Equities Trust.
Thier says one advantage of being among only a few in a very niche market, is that they (includingGlebe Asset ManagementandHunter Hall) are the only managers that focus purely on ethical investments.
For hardcore ethical investors, this is vital. Thier says in the eyes of some, fund managers that offer ethical investments as only part of their suite of products do not make the grade. He says there is also a trend among clients to specifically request their planner to look at investing in the group.
But the best story for Australian Ethical now is that the good returns it generates mean even those who aren’t necessarily ethically inclined are interested in investing with the group.
