Question

Find the website of ‘Australian Ethical’. Using the information on the website (and ensuring that you reference it correctly), answer the following questions:

a)      Provide a brief outline of the activities of Australian Ethical (200 words maximum)

b)      Using the descriptions in Hunt and Terry (2015) classify Australian Ethical by type of fund. (200 words maximum)

Answer 1

1) Australian Ethical is a wealth manager which provide investors with options to invest in businesses which are progressive and not in those fields which can be detrimental to the society or the environment overall. The companies in which the investments are made consists of firms operating in high end technology, sustainable solutions, green energy and medical solutions etc. The investments in businesses such as tobacco, fossil fuels or any kind of exploitation is avoided to promote sustainable development goals. These investments can happen for the retail investors for as little as $500 and the wealth manager provides options of managed funds, pension funds etc. The return provided by the Australian Ethical’s funds have been also good suggesting that ethical and sustainable businesses are doing good in the commercial sense as well.

2) Australian Ethical is a wealth manager and it provides managed funds such as Balanced Fund, Diversified Shares fund, Australian Shares Fund, International shares fund, Emerging companies fund, Income Fund, Fixed Interest Fund and Advocacy Fund. Thus Australian Ethical is a fund house which provides various categories of funds such as debt, equity, international market and these are actively managed funds to provide superior returns to the investors.