Australian Ethical plans further fund launches
An enormous change in demand for ethical investment has prompted Australian Ethical to explore how it allows more investors access to their products.
Speaking to Money Management, John McMurdo, chief executive of Australian Ethical, said there had been “enormous change” in investor demand for ethical investments.
“There has been enormous change in the last five years. We have been working in this space for 20 years and it’s transformed from being a niche industry to one which is part of every conversation. CEOs used to ignore the conversation but now companies are coming to us for advice, it has been turned on its head.”
This had been driven by an increased focus on global warming and climate change, an issue particularly topical in Australia which had seen extreme climate events recently such as the 2019 bushfires.
As a result, funds under management at Australian Ethical had risen to $6.5 billion as of 30 September, 2021 and the firm was exploring where else it could offer ethical investing options. It recently launched its first active high conviction ETF which invested in 20-35 companies which met its Ethical Charter.
“Our market has expanded dramatically, funds under management have increased and we want to be able to offer a range of options for investors,” McMurdo said.
“We are continuing to develop new products and are looking at some other ETFs and are looking at the international space because we see technology opportunities available overseas. We want to broaden our international presence over time.”
AUTHOR
Laura Dew
Recommended for you
Women are expected to inherit US$124 trillion through the intergenerational wealth transfer, but Capital Group has found they are twice as likely to rely on social media for advice over a financial adviser.
Challenger Investment Management has raised $350 million during the offer period for its new ASX-listed investment structure.
A week after Lonsec downgraded multiple funds from Metrics Credit Partners, rival research house Zenith Investment Partners has opted to retain its ratings for the same funds.
Strong adviser engagement has helped Praemium reach $1 billion in inflows on its Spectrum offering, with a deal with Western Australian wealth firm Euroz Hartleys expected to add as much as $2 billion.
