According to data from SuperRatings, the Australian Ethical balanced (MySuper) option ranked third for its one-year performance, with returns of 2.4 per cent. It was among only 15 of the options in the SuperRatings SR50 balanced index to generate a positive return for members as the COVID-19 crisis hit markets through March.
Australian Ethical also saw an increase in FUM to $4.05 billion and record net inflows of $660 million.
“This has been a pivotal year for Australian Ethical and these performance results reinforce what we have long known – that our style of investing can generate consistent outperformance while having a positive impact on the world even during the most challenging environment,” said CEO John McMurdo. “These have been unprecedented times for not just global economic activity and stock markets, but for all of us personally.
“To end such a turbulent year with market-leading returns for our members and record flows into our superannuation and managed funds products is testament to the experience and commitment of everyone at Australian Ethical.”
Chief investment officer David Macri credits the performance to Australian Ethical’s portfolio construction process, with a skew to small caps that have created portfolios “quite different” to market indices.
“In addition to our outperformance in small caps, our sector positioning has also contributed to this year’s performance,” Mr Macri said. “For example, we are underweight to the banking sector and overweight in the healthcare and IT sectors. Our performance in the unlisted property asset class was also market-leading, thanks to the underlying funds we selected using our process.
“I’m really proud of these results which I hope will put an end to the myth that ethical investing is only about doing the right thing, not generating financial returns.”
