Australian Ethical on Tuesday announced its entrance into the small pool of actively managed ethical ETFs with the launch of its High Conviction Fund ETF consisting of 20 to 35 companies primarily drawn from the ASX 300.
The launch of the new ETF, which is set to only invest in a select group of companies that exhibit attractive investment fundamentals, follows last year’s launch of the Hight Conviction Fund as a wholesale trust.
Speaking on the occasion, Mike Murray, head of domestic equities of Australian Ethical, acknowledged the 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,” Mr Murray said.
“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,” he continued.
Similarly, John McMurdo, CEO and MD of Australia Ethical said, “democratising access to ethical investment, through the release of products such as this ETF, is a very important part of our strategy”.
Australian Ethical’s funds under management (FUM) rose 37.4 percent in 12 months from $5.05 billion to $6.94 billion as at 31 December 2021.
Maja Garaca Djurdjevic
Maja's career in journalism spans well over a decade across finance, business and politics. Now an experienced editor and reporter across all elements of the financial services sector, prior to joining Momentum Media, Maja reported for several established news outlets in Southeast Europe, scrutinising key processes in post-conflict societies.
