Best Performing Ethical Investments 2021

Ethical Investments continue to show strong performance with some of the top funds outperforming the index both in the Australian & International markets during 2021.

Although COVID continued to disrupt the economy throughout 2021, investors seemed to be on a buying spree across most asset classes. In fact, 2021 saw most asset classes (except Gold and Bonds perhaps) achieve double digit returns. This buying spree was felt right down the supply chain, too, increasing demand for a range of products. By the end of the year, the perfect storm for rising inflation had set in - leading to pressure to raise interest rates.

2021 was also notable as a year we turned away from, and towards each other. A sense of division and segregation also rose, leading to an increase of distrust and conspiracy theories. In fact, a survey conducted in November 2021 by Edelman found that almost half of their respondents viewed government (& the 'democratic' process) and media as divisive forces in society. Below is an extract from their report:

With government failing to lead on society's biggest challenges, from climate change and reskilling to racial justice and trustworthy information, business now has a unique opportunity to emerge as a critical stabilising force.

If the last two years have taught us anything, it is that Milton Friedman was wrong about the fundamental purpose of business, especially in today’s complex world. Maximizing shareholder profit will always be important, but to break the cycle of distrust, business must recognize its equal obligations to all stakeholders—consumers, employees, communities, and investors.

More specifically, business must:

• Double down on Purpose and ESG at the core of business strategy

• Actively work to address society’s most pressing issues, such as climate change, by decarbonizing its operations and supply chains, moving from pledges to action

• Lean in on partnering across institutions — government, NGOs, and media — to forge common ground, foster innovation and drive impact

• Lead with trustworthy and quality information, modeling responsible communication

Here are 2 key highlights you can find inside the latest report:

1. Which Ethical funds outperformed the ASX & Dow Jones again (find out if your ethical fund is in the top 5)

2. A tailored ethical investment portfolio still outperforms industry super ethical options

You can download the TOP PERFORMING ETHICAL INVESTMENTS 2021 Guide by clicking on the link below.

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