Australian Ethical will manage an industry superannuation fund's responsible investment option, totaling $128 million.
The ethical investment and superannuation provider was appointed by Australian Catholic Superannuation and Retirement Fund to manage the sum via its balanced fund, which offers a diversified risk profile spanning all asset classes.
The $7 billion Australian Catholic Superannuation and Retirement Fund said it is responding to member demand for an ethical investment option.
"Many of our members want to take a strong stance regarding responsible investing. We chose to appoint Australian Ethical to manage our responsible investment option as they are the clear leaders in this area, with a strong team and performance record," Australian Catholic Superannuation and Retirement Fund chief executive Greg Cantor said.
Australian Ethical managing director Phil Vernon said this is further acknowledgement of Australian Ethical's standing as a leading responsible investment funds manager.
"Increasingly, institutional investors are coming to understand that responsible investment should be a key part of their strategy. This is a rapidly growing sector because clients are increasingly demanding that their investments align with their values, so it makes good business sense to offer quality responsible investment choices," Vernon said.
Vernon said the firm's balanced fund is suitable for superannuation fund members as it carries less risk when compared to higher risk equities options in the market.
"Australian Catholic Superannuation and Retirement Fund chose us because of our stance on no fossil fuels, their alignment with our broader values, combined with our talented investment team and consistently strong investment performance. We're looking forward to working with other institutional clients who need a genuine, viable option in the responsible investment market," he said.