Are you paying too much for your ESG fund?
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 |
|
20.48% |
1.23% |
|
|
18.00% |
1.20% |
|
|
16.92% |
0.35% |
|
|
16.39% |
0.45% |
|
|
*State Street International Equities Index Trust Low Carbon ESG |
16.09% |
0.24% |
|
15.69% |
0.35% |
|
|
15.67% |
1.28% |
|
|
14.16% |
0.85% |
|
|
13.95% |
0.98% |
|
|
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
AUTHOR
Chris Dastoor
Recommended for you
Australian and New Zealand sustainable funds saw outflows of more than $1.2 billion in the second quarter of 2024, according to Morningstar, with active strategies accounting for the majority.
Maple-Brown Abbott has finalised an agreement to be acquired by a rival fund manager to create a firm with $18.6 billion in assets under management, just two months after its former CEO exited to lead Magellan.
Following a strategic review, Platinum has announced it will merge its two listed investment companies with two of its quoted managed hedge funds.
With potential US interest rate cuts on the horizon, Income Asset Management believes now is an ideal time to be investing into the corporate bond market.
