Aus Ethical targets environmentally friendly investing
Australian Ethical has launched the Climate Advocacy Fund, which will invest in S&P/ASX 200 firms with environmentally conscious practices.
The fund will aim to positively influence corporate behaviour while also outperforming the index.
The fund will pursue its aims through a passive portfolio construction method using ‘economic footprint’ weightings, which examine a company’s sales, cash flow, book value and dividends, according to Australian Ethical.
The approach “provides nominees and investors with a structured method to address inappropriate corporate activities,” the manager said.
The fund is targeting individuals who want to work towards improving the sustainability of corporate Australia, foundations with environmentally conscious aims, and superannuation funds and institutions that want to demonstrate their commitment to responsible investing.
Investments will encourage corporations to develop sustainable practices, lower waste and pollution, develop locally based ventures and alleviate poverty. The fund will discourage actions such as exploitation, discrimination, deceitful marketing, militarism, armament manufacture and the encouragement of financial over-commitment, Australian Ethical said.
Recommended for you
A financial advice firm has been penalised $11 million in the Federal Court for providing ‘cookie cutter advice’ to its clients and breaching conflicted remuneration rules.
Insignia Financial has experienced total quarterly net outflows of $1.8 billion as a result of client rebalancing, while its multi-asset flows halved from the prior quarter.
Prime Financial is looking to shed its “sleeping giant” reputation with larger M&A transactions going forward, having agreed to acquire research firm Lincoln Indicators.
An affiliate of Pinnacle Investment Management has expanded its reach with a London office as the fund manager seeks to grow its overseas distribution into the UK and Europe.
