Australian Ethical launches its first-ever actively-managed ethical ETF

Australian Ethical launches its first-ever actively-managed ethical ETF

Australia’s original responsible investment and super fund manager Australian Ethical has launched its first ever ETF, providing new access for all Australian investors to its award winning ethical investment capability. 

The “High Conviction Fund ETF” (ticker: AEAE) is an actively managed portfolio of 20 to 35 companies primarily drawn from the ASX 300, that each meet extensive ethical criteria for investment based on Australian Ethical’s rigorous Ethical Charter.  

It is one of just a small handful of actively managed ethical ETFs in Australia, and will only invest in a select group of companies that exhibit attractive investment fundamentals based on the team’s in-depth research process. 

Mike Murray, Head of Domestic Equities of Australian Ethical, said, “The High Conviction Fund ETF is our first product in an increasingly important channel, to give all Australians investors access to our award-winning ethical investment and high-performance strategies. With rising demand for ethical investing, there is a growing need for access to authentic, true-to-label, and robust investment solutions across a range of different channels. 

“Our first ETF leverages the combined depth of our ethical research and domestic equities capabilities, and seeks exposure to forward-looking industries such as renewables, healthcare, communications, and information technology. It targets a highly liquid portfolio of mid- and large-cap securities complemented by select smaller cap exposures that all meet our twin ethical and investment hurdles.  

John McMurdo, CEO & MD of Australia Ethical, said, “Our investment team leverages over 35 years of proven track record and expertise as Australia’s original ethical investor. We are extremely proud of having some of the highest standards in the market for both our ethical portfolio and financial returns. 

”Democratising access to ethical investment, through the release of products such as this ETF, is a very important part of our strategy.” 

The ETF follows last year’s launch of the High Conviction Fund as a wholesale trust and complements a suite of domestic equities products that meet the growing demand for quality ethical investments with long-term capital appreciation. These have driven up Australian Ethical’s funds under management (FUM) 37.4% in 12 month from $5.05 billion to $6.94 billion as at 31 December 2021. 

Angus Dennis has also recently joined Australian Ethical as an Investment Director to lead the institutional channel strategy. Angus was formerly the Institutional Sales Executive at Vanguard Australia, and has over 30 years of experience in institutional funds management and marketing. 

The High Conviction Fund ETF is listed on CBoe Australia (formerly Chi-X) on Tuesday, 1 February 2022 from 10am.