- Australian Ethical’s ‘Fixed Interest Trust’has $125m FUM
- Trust utilises the same ethical process for all Australian Ethical funds
“Australians wanting to invest in ethical fixed interest assets can – for the first time – have access to a managed fund that aims to match or better the mainstream index via Australian Ethical’s Fixed Interest Trust (AEFI Trust),” says David Macri, CIO of Australian Ethical.
Australian Ethical’s Fixed Interest Trust – performance, FUM, portfolio
Has outperformed the index, on an after-fees basis since inception: 4.5% p.a. (UBS Bond Index 4.4%)
FUM of $125m
Current allocations:
- 41% Australian Government bonds
- 35% corporate bonds that meet ethical screen
- 18% State Government bonds* from Vic., SA, NT and ACT that meet the ethical screen
- 5% sovereign wealth bonds that meet ethical screen
*Trust excludes bonds from NSW, QLD, WA and Tas. which own/operate fossil fuel power assets and provide explicit support to the mining + forestry industries.
The Trust was seeded in 2012 with the fixed income assets that had previously been managed in the Australian Ethical Balanced Trust.
The Trust is a diversified portfolio interest-bearing investment comprised solely of Australian dollar-denominated fixed rate investments that meet the Australian Ethical Charter (see below).
“While benchmarked against the UBS Composite Bond Index, our Fixed Interest Trust’s universe is considerably more discerning than a mainstream bond fund. For example, Commonwealth government bonds represent a little less than 40% of the Trust’s assets.
“The Trust does not possess an overarching thematic. Its aim is to provide a fixed income portfolio of medium term duration (currently 4.3 years) that resembles that of the UBS/Bloomberg AusBond Composite Index, while maintaining alignment with the Australian Ethical Charter,’ said Mr Macri.
Media comment
David Macri
CIO
Australian Ethical
02 6201 1993
0404 080 862
dmacri@australianethical.com.au