26 Jul Responsible Investing Paying Off
This month we attended a conference hosted by KPMG and the Responsible Investment Association Australasia (RIAA) for the release of the 2019 Responsible Investment Benchmark Report. This was 18th edition of the report prepared by RIAA and it details industry data on the size, growth, depth and performance of the Australian responsible investment market (RI) market over the 12 months to 31 December 2018.
Here are some of the highlights:
- The RI market is continuing its upward trajectory and with associated assets under management growing 13% in 2018 to $980 billion. This represents 44% of total professionally managed AUM (TAUM), which now sits at $2.24 trillion according to the Australian Bureau of Statistics (ABS).
- Responsible investment Australian RI share funds outperformed mainstream Australian share fund benchmarks for all periods except the three-year term.
- Responsible investment International RI share funds outperformed the Morningstar average mainstream international share fund over every time horizon.
- Responsible investment multi-sector funds outperformed the mainstream multi-sector growth fund average over every time horizon.
- RI investing is not just one strategy. However, the dominant strategy for investors is ESG (Environmental, Social and Governance) integration paired with corporate engagement and shareholder action.
You can download the full report from RIAA by clicking on the link here.
We can no longer ignore the importance of RI as a driver of long term performance. The myth of poor performance relating to adding this style of investing in your portfolio is well and truly busted. Companies that ignore these factors do so at the risk of long term growth of earnings which is reflected in their share price.
If you would like to know more, talk to Michael Sik at FinPeak Advisers on 0404 446 766 or 02 8003 6865.
Important information and disclaimer
The information provided in this document is general information only and does not constitute personal advice. It has been prepared without taking into account any of your individual objectives, financial solutions or needs. Before acting on this information you should consider its appropriateness, having regard to your own objectives, financial situation and needs. You should read the relevant Product Disclosure Statements and seek personal advice from a qualified financial adviser. From time to time we may send you informative updates and details of the range of services we can provide. If you no longer want to receive this information please contact our office to opt out.
FinPeak Advisers ABN 20 412 206 738 is a Corporate Authorised Representative No. 1249766 of Aura Wealth Pty Ltd ABN 34 122 486 935 AFSL No. 458254