Doug Goodwille from Kayne Anderson speaks to Drew Meredith from The Inside Network on market thinkers.
While a surging gold price is on hold as the world adjusts to a Trump presidency, all the factors that saw its price rise more than 50 per during his first term in office – trade disputes, fiscal deficits and geopolitical tensions – are almost certainly guaranteed the second time around.
Australian Ethical launches high-conviction strategy
Australia’s longest-standing “responsible investment” manager, Australian Ethical, has launched a new High Conviction fund to complement its suite of existing actively-managed funds.
Support for the Australian shares and emerging companies strategies has grown sixfold in just five years as Australians have become more ethically minded than ever before. From being just a point of conversation, the move to “go green” highlights how tackling climate change is now an urgent priority for many investors.
A fundamental shift towards investing that considers environmental, social and governance (ESG) issues, has compelled both investors and fund managers to recognise quality companies that demonstrate these factors.
And as sustainable investing continues to go mainstream, early pioneers of the sector such as Australian Ethical have become not only standout performers but leaders.
The launch of its latest fund goes one step further: the fund aims to provide long-term capital growth and income by focusing on a concentrated portfolio of 20 to 35 Australian and New Zealand companies, that meet the Australian Ethical Charter on the basis of social, environmental, and financial credentials.
The team will focus on companies that first and foremost tick all the right boxes, via Australian Ethical’s rigorous ethical screens, and can range from the mid to large-cap space. The company must have a leading market position and offer exposure to forward-looking industries such as renewables, healthcare, communications, and information technology.
With so many rigorous filters, it’s surprising to see that range of companies represented in the fund. Some of these names include Bendigo Bank (ASX: BEN), NIB (ASX: NHF), G8 Education (ASX: GEM), Cochlear (ASX: COH), Brambles (ASX: BHB) and renewables energy operator Contact Energy (ASX: CEN).
Commenting on the launch, John McMurdo, CEO and managing director of Australian Ethical, said “economies and global markets continue to evolve in line with a near-universal desire for a more sustainable future. Today’s investors want access to portfolios across asset classes that are designed to deliver positive impacts for people and the planet, as well as performance.
“Over the past 12 months, we’ve seen record net flows into our award-winning products, buoyed by excellent investment performance and a rising awareness among Australians of the power of their money in driving climate action,” says McMurdo.
