Select acquires to catch SRI wave
Select Managed Funds has made a push into the socially responsible investments (SRI) sector with the purchase of a 13 per cent stake in Australian Ethical Investment.
The firm, whose strength is in trusteeship and administration of public superannuation master funds, said it made the acquisition for several reasons, including to consolidate its existing relationship with Australian Ethical.
“We’ve been associated with Australian Ethical for five years plus now. We administer all of their superannuation,” Select managing director Chris Kelaher said.
Select also believes the SRI sector will increase in popularity with the introduction of choice of fund.
“With choice we are observing that most of the people that are motivated to move are generally driven by ideological views, or views on ethics,” Kelaher said.
The 13 per cent stake has been purchased from Ascalon Capital Managers, which originally surprised Select by beating it to the punch in acquiring the share of Australian Ethical.
“I’ve been aware of that stake for ages. We’ve always looked at it and thought it was appealing and I guess we were a little gazumped when Ascalon came in. Nevertheless, we obviously know the people at Ascalon reasonably well. We’ve been talking with them over the last little while and the opportunity has arisen from that,” Kelaher explained.
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