Civil Voices
MEDIA, JOBS & RESOURCES FOR THE COMMON GOOD
NEWS  | 

Responsible Investment Funds Top Performers


Wednesday, 24th July 2013 at 10:05 am
Lina Caneva, Editor
Responsible investment funds are delivering better returns than the average mainstream fund in Australia, new research from the the Responsible Investment Association of Australasia (RIAA) suggests.

Wednesday, 24th July 2013
at 10:05 am
Lina Caneva, Editor


0 Comments


FREE SOCIAL
SECTOR NEWS

 Print
Responsible Investment Funds Top Performers
Wednesday, 24th July 2013 at 10:05 am

Responsible investment funds are delivering better returns than the average mainstream fund in Australia, new research from the the Responsible Investment Association of Australasia (RIAA) suggests.

The industry body has released their 2013 Responsible Investment Benchmark Report, which compared the performance of responsible funds with mainstream funds across three major investment categories: Australian equities, international equities and multi-sector growth funds.

Core responsible funds came out on top in all but one category across one, three, five and ten year periods, and had better five year returns following the global financial crisis.

Core funds included specifically tailored managed funds, direct share portfolios managed by financial advisers, and also microfinance and microcredit offered by banks.

“The strong outperformance of ethical and responsible investment funds should finally put to bed the myth that a more responsible approach to investing leads to lower returns,” RIAA CEO Simon O’Connor said.   

“With more of the region’s investments being made under responsible investment mandates, the extra analysis undertaken for every investment decision means responsible investors have a deeper understanding of their investments, so it should be no surprise they are earning better returns.”

Funds under responsible investment portfolios at December 2012 comprised 16 percent of all assets under management, at $152 billion, with three percent growth since 2011.

“With eight of the top ten investment managers in Australia having now declared themselves responsible investors by signing on to the UN Principles for Responsible Investment, it would be fair to say that responsible investment has become mainstream” said Simon O’Connor.  

Responsible investment funds covered by the report included all ethical and socially responsible funds, as well as funds managed under ESG integration rated ‘above average’.

ESG integration was the dominant method of investing responsibly, making up 89 percent of the market total, having grown by 33 percent between 2011 and 2012.

Data for 2013 was sourced from 117 funds, over 100 advisers and 20 community finance organisations.

The RIAA has commissioned the research annually since 2002.

The 2013 report featured a section on impact investment for the first time.

Drawing on data from ‘IMPACT–Australia: investment for social and economic benefit,’ a study by the Department of Education, Employment and Workplace Relations, the RIAA spotlighted the significance of impact investing’s emergence in Australia.

“As societies grow so too do their needs. Unmet needs present opportunities for investors to innovatively address this gap in the market. Impact investing supplies capital for this. It creates the opportunity for entrepreneurship and where infrastructure is concerned, it also creates jobs in the process.  

“RIAA is supporting this outlook and encourages the growth of impact investment in Australia,” the report said.  

Read the full report here.


Lina Caneva  |  Editor |  @ProBonoNews

Lina Caneva has been a journalist for more than 35 years, and Editor of Pro Bono Australia News since it was founded in 2000.

FEATURED SUPPLIERS


Helping the helpers fund their mission…...

FrontStream Pty Ltd (FrontStream AsiaPacific)

NGO Recruitment is Australia’s not-for-profit sector recru...

NGO Recruitment

Fantastic digital management app for organisations deliverin...

Ateesa

Yes we’re lawyers, but we do a lot more....

Moores

More Suppliers

Get more stories like this

FREE SOCIAL
SECTOR NEWS

YOU MAY ALSO LIKE

Call for Action on Disadvantaged Suburbs – Report

Lina Caneva

Tuesday, 21st July 2015 at 10:32 am

National Child Abuse Redress Scheme ‘Complicated’

Lina Caneva

Thursday, 16th July 2015 at 10:06 am

Not for Profits Grill Assistant Treasurer

Lina Caneva

Thursday, 9th April 2015 at 12:39 pm

Petition to Save Indigenous Legal Services

Lina Caneva

Tuesday, 17th March 2015 at 10:34 am

POPULAR

Luke Batty Foundation to Close as Rosie Batty Steps Down

Luke Michael

Monday, 19th February 2018 at 5:37 pm

Calls to Remove ‘Blanket Religious Exemptions’ for Faith-Based Charities

Luke Michael

Friday, 16th February 2018 at 2:35 pm

Sharp Decline in People Accessing Disability Support Pension

Luke Michael

Wednesday, 21st February 2018 at 4:59 pm

Employee-Led Mutual to Deliver NDIS Services in SA

Luke Michael

Monday, 19th February 2018 at 10:54 am

Write a Reply or Comment

Your email address will not be published. Required fields are marked *


c
pba inverse logo
Subscribe Twitter Facebook

Get the social sector's most essential news coverage. Delivered free to your inbox every Tuesday and Thursday morning.

You have Successfully Subscribed!