Are you paying too much for your ESG fund?

ESG global equities equities FE Analytics fees AXA IM Sustainable Equity Dimensional Global Sustainability Trust Unhedged actively managed funds managed funds CFS Generation WS Global Share Nanuk New World ESG funds State Street International Equities Index Trust Low Carbon UBS IQ MSCI World ex Australia Ethical ETF ETFs exchange traded funds Macquarie Arrowstreet Global Equity Australian Ethical International Shares Wholesale AMP Capital Ethical Leaders International Share PanAgora Dynamic Global Equity

22 November 2019
| By Chris Dastoor |
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Some of the best returning environmental, social and governance (ESG) global equity funds are outperforming the sector average, while offering below average fees.

AXA IM Sustainable Equity (0.35% fee p.a.) and Dimensional Global Sustainability Trust Unhedged (0.45% fee p.a.) charged the lowest fees of the actively managed funds, while being the third and fourth top performers over the last three years, according to FE Analytics.

However, while CFS Generation WS Global Share (1.23% fee p.a.) and Nanuk New World (1.2% fee p.a.) charged above average fees, they were the best two performing funds.

The average management fee for global equity ESG funds was 0.9% p.a., slightly lower than the ACS Equity – Global average management fee of 0.95% p.a.

Fees of the top 10 best performing global ESG funds over the three years to 31 October 2019 annualised

Fund

Return

Fee

CFS Generation WS Global Share

20.48%

1.23%

Nanuk New World

18.00%

1.20%

AXA IM Sustainable Equity AUD

16.92%

0.35%

Dimensional Global Sustainability Trust Unhedged AUD

16.39%

0.45%

*State Street International Equities Index Trust Low Carbon ESG

16.09%

0.24%

*UBS IQ MSCI World ex Australia Ethical ETF

15.69%

0.35%

Macquarie Arrowstreet Global Equity

15.67%

1.28%

Australian Ethical International Shares Wholesale

14.16%

0.85%

AMP Capital Ethical Leaders International Share

13.95%

0.98%

PanAgora Dynamic Global Equity (Ex Tobacco) B

13.89%

0.56%

*denotes passive fund

Source: FE Analytics

The best five performers were CFS Generation WS Global Share (20.48%), Nanuk New World (18%), AXA IM Sustainable Equity AUD (16.92%), Dimensional Global Sustainability Trust Unhedged (16.39%) and State Street International Equities Index Trust Low Carbon ESG (16.09%), over the three years to 31 October, 2019 on an annualised basis.

Only the top 11 outperformed the ACS Global – Equity sector.

Top performing global equity ESG funds over the three years to 31 October 2019

 

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