Australia bucks fossil fuel exclusion trend
Global indices which exclude fossil fuels have outperformed those which include them but this is not the case for Australia.
According to FE Analytics, the MSCI World index returned 110% and the MSCI ACWI returned 109% since inception of the indices on 15 March 2016 to 29 June, 2021, while their ex-fossil fuel counterparts had performed better with returns of 115% and 113% respectively.
However, this was not the case for Australia where the MSCI Australia index returned 74% while its ex-fossil fuel counterpart had returned 65%. It also applied to coal with the MSCI Australia ex Coal index returning 62% over the same period.
The difference was smaller over one year, however, with all three sectors returning 29%.
Looking at the stock exchange, the ASX 200 returned 75% over the same period but the ASX 200 Resources sector returned 164% thanks to the performance of major ASX stocks such as Woodside Petroleum, Oil Search, Santos, and Whitehaven Coal.
The best performer of these stocks was Whitehaven Coal which returned 265% followed by Santos which returned 95%.
AUTHOR
Laura Dew
Recommended for you
Funds under management at Pinnacle Investment Management are approaching $180 billion, helped by a substantial jump in FUM from its overseas affiliates.
Warakirri Asset Management has partnered with US-based investment manager ClariVest to give Australian retail and wholesale investors access to the firm’s global small companies strategy.
Global X has come out fighting in the race to the bottom for ETF fees with an Australian equity ETF offering fees of just 0.04 per cent per annum, less than half those of the $20 billion Vanguard Australian Shares Index ETF.
Betashares has expanded its equity range, launching its latest Australian equity ETF and reducing the management fee on its existing global dividend ETF.
