"Ethical" funds have been some of the fastest-growing funds in Aus and for some time have eschewed the protection of a more diverse portfolio. In 2022 the music stopped and ethical investors paid the price.

"A bad year for super fund returns has spelt a serious setback for “green” funds as coal and oil stocks soared and clean tech shares dropped sharply.

Overall returns in super were down nearly 5 per cent – but returns were regularly twice as bad at green funds which completely missed the energy sector rebound. The average balanced fund – where most investors have most of their money – dropped by 4.8 per cent last year, the fourth negative year recorded by such funds since 2000, according to the SuperRatings group.

Top-rated green funds such as Australian Ethical had nowhere to turn when the tech sell-off accelerated in the second half of 2022. The Australian Ethical balanced fund was down 9 per cent over the year.

Australian Ethical has been the fastest-growing super fund in the market in terms of member accumulation over the last five years, according to KPMG.

Some of the worst performers were new funds that target younger investors with green products: Spaceship Super, a fund which has a focus on global technology, reported a minus 15 per cent return on its growth fund.

Younger investors have clearly been attracted to the Spaceship fund – its annual report said it had an 80 per cent growth in membership last year.

Future Super, which focuses on “climate-conscious super”, reported an 11 per cent drop in its balanced fund while the group’s more specialized funds did even worse: The group’s Renewables Plus Growth fund fell by 13 per cent over the year."

I watched a Woke black woman arguing about the definition of 'woke' with Piers Morgan. Neither of them came op with the correct definition - 'stupid'.

"I watched a Woke black woman arguing about the definition of 'woke' with Piers Morgan. Neither of them came op with the correct definition"

Gawd ... the level of intellectual debate amongst some here is scintillating.

We got ourselves a new magic word!

We love it!

The young self righteous have a lot to learn.
How to pick frauds is one of the big ones in life’s path. Booby traps set by the polished mafia.

Struth, the stupidity in this thread is astounding!
Because of the war in Ukraine, fossil fuel prices have risen. Therefore fossil fuel companies are more profitable, and other companies are less profitable. But it's only a short term situation. Having a bad year doesn't equate to going broke

Aiden,

That's why any responsible investment funds have a diversified portfolio because sh1t happens and a fall in one area is compensated by a rise in others.

The stupidity is the investors driving this system.

Shadow,
> The stupidity is the investors driving this system.
Are you sure? It looks to me like the stupidity is the assumption that investors are after short term stability rather than long term gains.

Australian Ethical balanced fund hit a high of $1.70 on the 11th of January 2019.

At the 11th of January this year it was sitting at $4.31. it now sits at $4.60 per share.

Sure there have been some ups and downs over the 4 years some times nearly reaching $15, but taken long term the shares still represents a return of over 2 and a half times the original investment in 2019.

So let's look at a prominent energy stock, Woodside Energy. Share price at the 11th of January 2019 was $32.69. At the 11th of January this year they sit at $35.52, a return over the 4 years of under 9%.

I know which one I would have preferred to have invested in.

What an inane thread.

SR,

Sure if you cherry-pick you can find particular funds that perform better than others. Generally, you don't do as well.

What is an ethical investment? Coal is helping to keep the lights on and the economy functioning: Does that make coal ethical? Is it ethical to promote wind and solar as a dispatchable energy alternative?

shadowminister,

What on earth are you talking about?

I looked at the main fund which was highlighted in your post. I didn't go cheery picking anything.

SR

https://www.australianethical.com.au/globalassets/pdf-files/managed-funds/monthly--quarterly-fund-reports/2022/12_december/wholesale/balanced-fund-wholesale-december-2022.pdf

The fund that you are describing achieved an average return since its establishment of about 6%. Not exactly a stellar performance.

the assumption that investors are after short term stability rather than long term gains.
Aidan,
Australian investors are short-term, those from other Nations are long-term planners !
Telstra is a perfect example of putting quick returns before service !