Australian Ethical Investment

Are small caps set to outshine ASX giants? Over recent months there has been a quiet resurgence: smaller companies are quietly outperforming their larger counterparts. While the top 100 companies posted a solid 10.4% return in the year to September, the ASX Small Ordinaries Index surged ahead with 22.8%*. But what’s driving this outperformance? For our Head of Equities Nathan Parkin it’s a mix of attractive valuations, small cap earnings momentum and easing global interest rates - but there’s plenty more to unpack. Explore how our Emerging Companies Fund is built to capture the market’s next big opportunities: https://lnkd.in/dQubw2F2 *Source: Morningstar Direct Performance information is correct as at 30 September 2025. Consider if the products are right for you and read the FSG, PDS and TMD at australianethical.com.au. Issued by Australian Ethical Investment Ltd (ABN 47 003 188 930, AFSL 229 949). Past performance is not a reliable indicator of future performance.

Why small caps are poised for growth Our Head of Equities, Nathan Parkin shares why some of the market’s biggest names are starting to underperform and why the outlook for small caps is becoming increasingly attractive. Watch the full video to hear our perspective on where the real opportunities lie and how our Emerging Companies Fund is positioned to capture them: https://lnkd.in/dQubw2F2 Performance information is correct as at 30 September 2025. Consider if the products are right for you and read the FSG, PDS and TMD at australianethical.com.au. Issued by Australian Ethical Investment Ltd (ABN 47 003 188 930, AFSL 229 949). Past performance is not a reliable indicator of future performance.

For years, Australia’s biggest companies have dominated investor flows — but stretched valuations and slowing earnings are starting to test the case for large caps. Meanwhile, further down the market, a different story is unfolding. Small caps are showing signs of resurgence, offering both growth potential and compelling entry points. At Australian Ethical, we believe smaller companies — often under-researched and undervalued — present fertile ground for active investors seeking long-term opportunities. 👉 Read why we believe small caps could be the market’s next big opportunity: https://lnkd.in/dQubw2F2 Consider if the products are right for you and read the FSG, PDS and TMD at australianethical.com.au. Issued by Australian Ethical Investment Ltd (ABN 47 003 188 930, AFSL 229 949)

The market story is shifting. While large caps face stretched valuations, small caps have been delivering. Our Australian Ethical Emerging Companies Fund (Wholesale) has returned 12.8% over the past year and 12.5% pa over 7 years— capturing opportunities where others may see inefficiency. With a focus on innovative healthcare, quality industrials, and early-stage growth companies, the Fund is built to unlock long-term value often overlooked by the broader market. 👉 Explore how we’re positioning for the next stage of the cycle: https://lnkd.in/dQubw2F2 Performance information is correct as at 30 September 2025. Consider if the products are right for you and read the FSG, PDS and TMD at australianethical.com.au. Issued by Australian Ethical Investment Ltd (ABN 47 003 188 930, AFSL 229 949). Past performance is not a reliable indicator of future performance.

We’re a super fund that cares about the climate. So we wanted to be LOUD in our call for the Government to set an ambitious 2035 emissions reduction target - doing so will stimulate the investment needed to protect and grow our economy. Read our letter to the PM and see how you can add your voice to ours.

At Australian Ethical, we’ve been investing for the future since 1986 – establishing an ethical investing movement doing right by people, planet and animals. Join hundreds of thousands of Australians who believe they can make money, influence change and help protect what we all value most. Because when your super prospers, we all thrive.