SRI investments continue to grow
Socially responsible investment (SRI) managed fund assets have grown 625 per cent over the past three years to a sum of $2.4 billion as at June 2003, according to a benchmarking survey by theEthical Investment Association(EIA).
Despite this rapid three-year growth, the managed SRI sector only recorded a modest eight per cent growth over the past year - two per cent faster than the overall retail and wholesale investment market.
The number of SRI funds created over the past three years mirror the rapid three year growth, with the 46 in June 2001 having increased to 63 by July 2003.
The top SRI fund managers by funds under management (FUM) wereHunter Hall Investment Managementat $529 million andGlebe Asset Managementat $506 million.
These were followed byBT Financial Groupat $232 million,Australian Ethical Investmentat $213 million andAMP Henderson Global Investorsat $202 million in FUM.
In the area of superannuation, the survey showed an increasing number of employer superannuation funds are now offering members an ethical overlay with $5.1 billion in assets now in these funds, up two per cent since last year.
Total SRI investment, including sectors such as investments by religious organisations, community finance investment and shareholder resolutions on environmental and social issues, has risen to $21.3 billion at June 2003.
This meant total SRI investment experienced an increase of 54 per cent since over the past year, and has more than doubled since 2001.
Deni Greene Consulting Services, which undertook the survey for the EIA, says the growth in SRI investments has been driven by the shifts in the market and in perceptions of investors and investment houses.
“In 2001 it was heady times as SRI first came to the fore while 2002 was dominated by the market going down, however 2003 is the year of the boardroom and SRI is no longer just for tree huggers and the true believers but is widely accepted by many people,” Greene says.
Recommended for you
While M&A has ramped up nationwide, three advice heads have explored Western Australia’s emergence as a region of interest among medium-sized firms vying for growth opportunities in an increasingly competitive market.
The Australian Financial Complaints Authority has reported an 18 per cent increase in investment and advice complaints received in the financial year 2025, rebounding from the previous year’s 26 per cent dip.
EY has broken down which uses of artificial intelligence are presenting the most benefits for wealth managers as well as whether it will impact employee headcounts.
Advice licensee Sequoia Financial Group has promoted Sophie Chen as an executive director, following her work on the firm’s Asia Pacific strategy.
