Australian Ethical invests in Social Benefit Bond
Fund manager Australian Ethical has undertaken an investment in the social benefit bond program established for the Benevolent Society.
The company announced last week that it had taken an allocation in the first Social Benefit Bond (SSB) to be arranged by Westpac and the Commonwealth Bank.
Announcing the investment, Australian Ethical said it was capital protected and had the potential for up to a 10 per cent return - well above equivalent NSW Government bond rates.
Describing the investment, it said returns were paid from an 'outcome payment' made by the NSW Government, with the payments based on how well the Benevolent Society performs in resolving the underlying issues being faced by the child and their family.
"We saw this as an excellent way to participate with both the private and public sectors to utilise different forms of preventative programs and assist children identified as being at risk of requiring state care," said Australian Ethical chief investment officer David Macri.
He said the company was attracted to the SSB program because it funds social good in the community while offering capital protection and above market returns.
Recommended for you
ASIC has released the results of the latest financial adviser exam, held in November 2025.
Winners have been announced for this year's ifa Excellence Awards, hosted by Money Management's sister brand ifa.
Adviser exits have reported their biggest loss since June this week, according to Padua Wealth Data, kicking off what is set to be a difficult December for the industry.
Financial advisers often find themselves taking on the dual role of adviser and business owner but a managing director has suggested this leads only to subpar outcomes.
