SRI achieving rapid growth
A recent survey into sustainable responsible investment (SRI) has shown funds under management (FUM) for this market sector grew from $7.67 billion to $11.98 billion for the year ending June 30, 2006.
The Ethical Investment Association (EIA) 2006 SRI Benchmarking Survey revealed total SRI assets had increased by 56 per cent over the past year and grown 36 times in size over the past six years.
“In dollar terms, SRI funds under management grew by $4.31 billion this year, compared to growth of $3.17 billion last year, which is a 36 per cent improvement in the growth figures alone. That is a very impressive result for the sector,” EIA executive director Louise O’Halloran said.
The main contributor to SRI growth over the past 12 months have been investment from the wholesale segment of the market, which made up 62 per cent or $7.87 billion of the increase.
“In 2006, the SRI sector has experienced sustained high growth due to strong investment returns and growth in the level of superannuation assets and investment portfolios,” O’Halloran said.
The incorporation of renewable energy infrastructure as part of the sector has also had a significant impact on SRI FUM, contributing $1.3 billion worth of investments to the rise.
New SRI funds to hit the market also had an impact, providing $773 million of funds to the sector.
In addition, the amount of direct share investment managed by financial advisers specialising in SRI rose from $482 million to $681 million in 2006. This represented a 40 per cent jump from the previous year’s figures.
Recommended for you
The profession is up by almost 200 advisers for the new financial year, with August continuing the consistent weekly positive gains.
WT Financial has announced its second “Hubco” with a combined valuation of $7.8 million, while its first one has successfully incorporated and is now making its own acquisitions.
The Australian Wealth Advisors Group has entered into a joint venture with a Melbourne financial services firm to launch a wealth manager.
Remediation and litigation costs have led AMP to announce a reduced statutory net profit after tax of $98 million for the first half of 2025.
