Positive Impact. Positive Return
Ethical investing is simply investing with a conscience.
As investors become more vigilant and financially literate, they realise that, inadvertently, they are financing and supporting activities around the globe that they do not agree with, by way of their investments. These activities may be socially injurious, religiously unacceptable, or ethically undesirable. Examples of such activities include arms manufacturing, alcohol and tobacco production, and building gambling facilities.
Ethical investing offers investors the opportunity to avoid the companies whose activities they would not want to support, and invest in those operating within an ethical framework that reflects their own ethical and/or religious stance.
Investing in an ethical and socially responsible way is now acknowledged as a sound medium to long-term strategy. Global Ethical Fund focuses on delivering an ethical, investment-grade product, that does not compromise on returns or ethical values.
We take our screening process seriously
Ethical fund vs average fund performance
Ethical funds have outperformed average funds over the short, medium and long term.*
While ethical funds aim to achieve strong returns over the long term, many investors still have the perception that the exclusion of certain stocks, and therefore a limited group of stocks to choose from, may lead to lower returns.
Over the long term, this has not necessarily been the case. Several recent studies support the notion that investing with your values does not necessarily compromise your financial gains. On the contrary, the analysts at Global Ethical Fund suggest that companies that pay close attention to social and environmental risks and opportunities will be more competitive in the long run.
Research has shown that Ethical funds can outperform regular funds. A survey commissioned by the Ethical Investment Association (EIA) compared the performance of Australian equity SRI funds to their mainstream counterparts in the year to June 30, 2005. The survey found the average SRI fund outperformed the average mainstream manager. This was despite a higher than average level of fees.^
- Ethical Fund %
- Average Fund %
* Source: Responsible Investment Association of Australasia, 2016 Benchmarking Report, 10 year performance returns to 30 June 2016. This graph does not represent Global Ethical Fund’s returns. Past performance isn’t a reliable indicator of future returns.
^ Socially Responsible Investment in Australia 2005 Survey – Commissioned by the Ethical Investment Association, October 2005.