SRI grows as planners show support
Sustainable responsible investment (SRI) is continuing to gain momentum, with funds under management in ethical investments reaching $7.67 billion, and two dealer groups — AMP Financial Planning and Ethical Investment Services — qualifying for the Ethical Investment Association’s (EIA) certification for SRI providers.
AMP Financial Planning was the first dealer group to be awarded the certification, which forms part of the SRI Symbol program the EIA launched in September last year.
EIA executive director Louise O’Halloran said the SRI Symbol was developed to help consumers identify and select ethical investment options, and is available in four categories: dealer groups; fund managers; superannuation funds; and individual financial advisers.
Certification allows the dealer group to display the SRI Symbol on business communications, product disclosure statements, prospectuses, and supporting marketing collateral and websites, in recognition of its commitment to promote the provision of SRI investments through its network.
Boutique dealership, Ethical Investment Services, will be awarded the dealer group certification at a presentation in Melbourne tomorrow.
During yesterday’s presentation, O’Halloran also released the results of the fifth EIA annual benchmarking survey, which revealed SRI funds under management had increased by 70 per cent over the past 12 months, or 2,360 per cent since 2000.
“Australia now has a wide range of SRI investment methodologies and a far greater diversity of asset classes. Now more than ever, it is important that investors are aware of and understand the many SRI options available to them,” O’Halloran said.
Growth in the past year has primarily been driven by the adoption of SRI policies by large superannuation funds, with wholesale portfolios accounting for 64.2 per cent of SRI funds under management.
Capital inflows to established SRI funds, capital contributions to SRI funds, and strong investment returns also boosted SRI funds under management from $4.5 billion last year to $7.67 billion in 2005.
Recommended for you
With an advice M&A deal taking around six months to enact, two experts have shared their tips on how buyers and sellers can avoid “deal fatigue” and prevent potential deals from collapsing.
Several financial advisers have been shortlisted in the ninth annual Women in Finance Awards 2025, to be held on 14 November.
Digital advice tools are on the rise, but licensees will need to ensure they still meet adviser obligations or potentially risk a class action if clients lose money from a rogue algorithm.
Shaw and Partners has merged with Sydney wealth manager Kennedy Partners Wealth, while Ord Minnett has hired a private wealth adviser from Morgan Stanley.
