The High Conviction Domestic Equities Fund will be available to wholesale investors.
Australian Ethical has announced the launch of its new actively-managed High Conviction Domestic Equities Fund.
The fund aims to provide long-term capital growth and income with a focus on a portfolio of 20 to 35 mid- and large-cap stocks from Australia and New Zealand in forward-looking industries including renewables, healthcare, communications and information technology.
“The Australian Ethical High Conviction Fund builds on the existing strengths of our domestic equities team and gives investors the opportunity to access a relatively concentrated portfolio of leading Australian companies that meet our rigorous ethical and investment hurdles,” said Mike Murray, head of domestic equities of Australian Ethical.
Companies must meet the Australian Ethical Charter on the basis of their social, environmental and financial credentials and the fund managers’ “rigorous” ethical screens.
Essential services, including Bendigo Bank, NIB, and G8 Education, global industry leaders such as Cochlear and Brambles, and renewables or recyclables operators, including Contact Energy and Sims Group are among the themes currently represented in the fund according to Australian Ethical.
“Economies and global markets continue to evolve in line with a near-universal desire for a more sustainable future,” said John McMurdo, CEO and MD of Australian Ethical.
“Today’s investors want access to portfolios across asset classes that are designed to deliver positive impacts for people and the planet, as well as performance.”
The High Conviction Fund will adopt a “benchmark unaware” strategy by actively identifying the top risk-adjusted opportunities and building a portfolio of companies that Australian Ethical deems as being attractively valued.
“Over the past 12 months, we’ve seen record net flows into our award-winning products, buoyed by excellent investment performance and a rising awareness among Australians of the power of their money in driving climate action,” Mr McMurdo said.
“We are building out our product pipeline to meet this growing demand, with the High Conviction Fund completing our suite of domestic equities products.”
Last month, Australian Ethical also launched one of Australia’s first 100 per cent ethical multi-asset high growth funds. The fund manager has urged Scott Morrison to attend the UN Climate Change Conference (COP26) in Glasgow later this month.
