This list is based on the top-performing investment funds found on responsible returns, an initiative of the Responsible Investment Association of Australasia.
1) AXA IM Sustainable Equity Fund – 18.65%
The AXA IM Sustainable Equity Fund invests in a diversified portfolio of companies within developed and Emerging markets. To achieve its investment objective the fund screens the MSCI ACWI ex Australia index and excludes companies that are involved in tobacco and armaments.
2) BetaShares Global Sustainability Leaders ETF– 16.98%
Performing just as well as the Betashares Australian offering, the BetaShares Global Sustainability Leaders Fund is an exchange traded fund that actively seeks to invest in 100 large global companies, excluding Australian companies, that have been identified as leaders in climate sustainability. This includes companies with high carbon efficiency or involved in reducing emissions and excludes companies that are exposed to the fossil fuel industry.
3) BetaShares Australian Sustainability Leaders ETF – 16.46%
This fund was designed to exclude companies with direct or significant exposure to the fossil fuel industry or engaged in other activities deemed inconsistent with responsible investment considerations. BetaShares Australian Sustainability Leader ETF’s methodology also preferences companies classified as “Sustainability Leaders” due to their involvement in sustainable business activities.
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4) Australian Ethical Emerging Companies Fund – 15.60%
A diversified fund made up of shares in small capitalisation companies which are selected on the basis of their social, environmental and financial credentials. This fund utilises an active stock-picking management style with stocks selected for growth rather than income. All stocks are chosen on the basis of relative value and Australian Ethical assess the risks and consider them if they are adequately priced.
5) Alphinity Sustainable Share Fund – 14.10%
The Alphinity Sustainable Share Fund provides a diversified portfolio of Australian stocks listed on the ASX that have strong Environment, Social and Governance (ESG) characteristics and, where possible, contribute towards the advancement of the UN Sustainable Development Goals (SDG) agenda. This managed fund is also available on the ASX as an mFund.
6) Australian Ethical Advocacy Fund – 13.30%
The Australian Ethical Advocacy Fund aims to not only invest in global and Australian environmentally or socially responsible companies, but that also use its investments to advocate for companies to improve their practices and governance.
7) Australian Ethical Diversified Shares Fund – 13.30%
Australian Ethical Diversified Shares Fund invests in Australian and international companies that have been identified as having a positive impact on the planet. This includes combating pollution and poverty, preserving endangered ecosystems or developing sustainable land use practices. It also avoids investing in companies that have a negative environmental or social impact.
8) Australian Ethical International Shares Fund – 12.10%
The International Shares Fund applies Australian Ethical’s charter to invest in international companies that practise responsible environmental and social practices. This involves both actively seeking to invest in companies making a positive impact, while screening out those that are involved in wasteful or harmful practices.
9) U Ethical Australian Equities Portfolio – 12.10%
This managed fund invests in Australian shares, fixed interest securities and cash. Their positive screening seeks out companies that promote human welfare and dignity or environmental sustainability. Examples include companies involved in: clean energy, sustainable agriculture, recycling and healthcare. It also aims to exclude companies with operations that include: thermal coal, tobacco manufacturing, alcohol production and animal cruelty.
10) Candriam Sustainable Global Equity Fund – 11.55%
Candriam Sustainable Global Equity Fund is a managed fund that invests in listed global equities which are selected from the MSCI World Index. More specifically, they invest in companies that they deem as sustainable and the fund has some level of screening that excludes companies involved in: tobacco, animal cruelty, nuclear power, labour rights violations and more.
All ethical managed funds and ETFs featured on Responsible Returns were considered for this list.
Past performance is not an indicator of future performance.
Cover image: Aaron Burden (Unsplashed)
If you’re comparing Online Share Trading companies, the comparison table below displays some of the companies available on Canstar’s database with links to the company’s website. The information displayed is based on an average of 6 trades per month. Please note the table is sorted by Star Rating (highest to lowest) followed by provider name (alphabetical). Use Canstar’s Online Share Trading comparison selector to view a wider range of Online Share Trading companies.