The Australian Ethical Large Companies Trust has been awarded a three-star rating by Standard and Poor's (S&P).
The fund is what S&P describes as a "deep green" manager, whose investment approach rejects a "best of sector" filter, avoiding companies with interests in negative-charter items such as tobacco, uranium and armaments.
"Between 70 to 80 per cent of the index is screened out, keeping very much to the principles of their charter, unlike so many other so-called green funds," S&P fund analyst Tara Bell said.
Unusually, the fund can invest up to 50 per cent of its portfolio in global equities. The trust held just under 26 per cent of its holdings in International equities at the end of November.
Over the five years to December 31, 2006, the fund returned 12.8 per cent a year compared to a peer group median return of 13.5 per cent a year.
"Although there may be superior alternatives on a purely returns-focused basis in this asset class, AE's Australian equities offering is suitable for investors who are pursuing an investment with strong social and environmental considerations," Bell said.
