BetaShares launches new range of ethical SMAs

BetaShares has announced the launch of four new ethical separately managed accounts, including an ethically screened direct equity option.

The BetaShares Australian Sustainability Leaders SMA holds direct equities and provides exposure to a range of Australian companies that meet strict sustainability and ethical screening criteria.

It is based on the methodology of the Australian Sustainability Leaders ETF (FAIR) from BetaShares that currently has more than $1.2 billion in assets under management.

Additionally, the three new multi-asset SMAs combine the ethically screened direct equities with BetaShares’ Sustainability Leaders Diversified Bond ETF (GBND) and Global Sustainability Leaders ETF (ETHI).

BetaShares said it was the first Australian ETF manager to launch an ethical direct equity SMA and ethically screened SMAs.

“Investors are increasingly seeking to align their portfolios with their values while at the same time meeting their investment goals,” said BetaShares chief executive Alex Vynokur.

“These ethical SMAs will offer investors more choice to achieve these complementary goals via true-to-label investment solutions.”

Research conducted by BetaShares found that the proportion of financial planners who provide advice on responsible investing doubled to 40 per cent between 2015 and 2020.

“Financial advisers continue to play an important role in the adoption of ethical investment options,” said Mr Vynokur.

“Our ethical SMAs will allow financial advisers greater scope to recommend market leading solutions to their clients as ethical options cement their place in investor portfolios.”

The ethical SMAs are currently available on the Praemium platform, and are expected to become available on more platforms in the near future.

An increasing shift towards carbon-sensitive investment products has recently been identified by the Responsible Investment Association Australasia.

It found that 86 per cent of Australians expect their superannuation to be invested responsibly and ethically, and 62 per cent believe ethical or responsible super funds have better long-term performance.

Jon Bragg

Jon Bragg is a journalist for Momentum Media's Investor Daily, nestegg and ifa. He enjoys writing about a wide variety of financial topics and issues and exploring the many implications they have on all aspects of life.