# Australian Ethical Investments



## ozi stocker (18 April 2014)

I have some cash savings that I am looking to invest for the first time and I have my eye on Australian Ethical https://www.australianethical.com.au

Just wondering what peoples thoughts are on the performance of their managed funds?

I do like the idea of ethical investment but I also want to make sure my money makes the best returns.

Thanks.


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## ROE (18 April 2014)

ozi stocker said:


> I have some cash savings that I am looking to invest for the first time and I have my eye on Australian Ethical https://www.australianethical.com.au
> 
> Just wondering what peoples thoughts are on the performance of their managed funds?
> 
> ...




It is a feel good feeling, good in theory bad in practise type of thing and it doesn't work and it could lower your return.

Here is why and how it works in the real world.

Say a listed tobacco company is trading on the stock market, and these ethical fund don't invest in them
and don't buy their shares and if enough of these fund don't buy them? what happen to this stock? their price 
is damn cheap and someone else will buy them and they make good money out of them and
guess what it hasn't change a thing, they still produce tobacco and stuff.

The only way they can make any differences is actively involve in the business and change its strategy or buy them out right and shut down their operation...a part from that it change nothing....and fund managers don't do that they pocket fees and buy shares in business.

I am fine with these fund saying we don't want to profit from other people suffering but if they say they can change thing it rarely works


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## DJG (18 April 2014)

I think you would find to be 100% ethical, you would essentially not have a single candidate to invest in. So perhaps the first or second layer is ethical, then it starts to turn dirty. IE - suppliers or suppliers are sweat shops. However the direct supplier isn't unethical.

Am I correct in thinking this or just away with the fairies?

I think you also need to define "ethical"; is it something that can harm you, kill you or hurt you? eg - Tobacco or is it something that can make you obese, eg - Coca-Cola? One could argue Coca-Cola Amatil is ethical with all their innovative PET packaging investment, recycling etc. Yet argue they make people fat and give them diabetes? 

What I'm trying to say is: where do you draw the line? A vague one at best.

I don't mean to appear to dishearten your choice of ethical investing, it just seems very vague to me.

Best of luck nonetheless


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## ozi stocker (18 April 2014)

DJG said:


> What I'm trying to say is: where do you draw the line? A vague one at best.
> 
> I don't mean to appear to dishearten your choice of ethical investing, it just seems very vague to me.
> 
> Best of luck nonetheless




The fact is the world we live in today is not just, there is untold suffering and immoral money making projects that are infecting our planet like a cancer, and we are now seeing the direct science of this with climate change.

My understanding is that they at least offer a 'more ethical' approach than generic investment firms, by focusing on the fine detail about who they invest in I think is counter productive and trivial. Yes I 'care', but I also want to live a comfortable life. Its a balance I guess.

What I want to know is whether financially I will take a big hit from investing with these guys. I am young and do not have endless sums of money so want to ensure that I am making responsible choices for my future.


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## ROE (18 April 2014)

If you care do it yourself pick business you want to be in...I do draw a line with my investment if I knowingly know how the business derive most of their profit and in my opinion it is immoral then I don't invest or I exit if I have an investment and these information surface....

It has to be 50% or more of their profit because some business has some form of stuff I don't particularly like else I got no place to invest.

When I bought ccv it was a second hand shop but over the years it get more and more of its cash from pay day lending so I exit and never invest in them again.

The other one is ALL, pokies maker .... It will not change how these business run or make money I just don't want to be part of it hence my previous post...


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## McLovin (18 April 2014)

DJG said:


> I think you would find to be 100% ethical, you would essentially not have a single candidate to invest in. So perhaps the first or second layer is ethical, then it starts to turn dirty. IE - suppliers or suppliers are sweat shops. However the direct supplier isn't unethical.




Yeah I agree. ROE said he wouldn't invest in a poker machine manufacturer, neither would I, but it gets kind of tricky when you think the largest operator of poker machines in this country is WOW. Would you invest in them? It's a difficult question on where to draw the line.


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## ROE (18 April 2014)

McLovin said:


> Yeah I agree. ROE said he wouldn't invest in a poker machine manufacturer, neither would I, but it gets kind of tricky when you think the largest operator of poker machines in this country is WOW. Would you invest in them? It's a difficult question on where to draw the line.




I would invest in WOW because majority of its money isn't make from Pokie machine...
When Woolies make 50% or more of its money from pokie no I wouldn't invest in them
WES and Coles has Hotel and Pokies as well.

Seriously big business always has some thorny stuff but you cant exclude them else you
got little left to park money for reasonable return and that where I draw the line 50% or more earning from stuff I dont like I dont get involve .


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## mabellemurphy (28 April 2014)

Hey buddy. Make sure to understand and think about in investing your money. Try to background check of that certain company if you are planning to invest.


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## beeftrucker (28 April 2014)

One thing that I have noticed is a small mum and dad business stock broking firm in Brisbane called "the sharemarket college" that has now changed their name of at least using another name "FINANCIAL INDUSTRY WHOLESALE SOLUTIONS" -- funny thing is that it's a stock broking firm that has NO stock brokers employed there!! I've checked the net and it looks like a lot of people have been burned by these guys. Has anyone heard of either the sharemarket college www.smc.edu.au or FIWS www.fiws.com.au?


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