Australian Ethical invests in Social Benefit Bond
Fund manager Australian Ethical has undertaken an investment in the social benefit bond program established for the Benevolent Society.
The company announced last week that it had taken an allocation in the first Social Benefit Bond (SSB) to be arranged by Westpac and the Commonwealth Bank.
Announcing the investment, Australian Ethical said it was capital protected and had the potential for up to a 10 per cent return - well above equivalent NSW Government bond rates.
Describing the investment, it said returns were paid from an 'outcome payment' made by the NSW Government, with the payments based on how well the Benevolent Society performs in resolving the underlying issues being faced by the child and their family.
"We saw this as an excellent way to participate with both the private and public sectors to utilise different forms of preventative programs and assist children identified as being at risk of requiring state care," said Australian Ethical chief investment officer David Macri.
He said the company was attracted to the SSB program because it funds social good in the community while offering capital protection and above market returns.
Recommended for you
Licensee Centrepoint Alliance has completed the acquisition of Brighter Super’s annual review service advice book, via Financial Advice Matters.
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
There is a gap in the market for Australian advisers to help individuals with succession planning as the country has been noted by Capital Group for being overly “hands off” around inheritances.
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
