Higher fees no barrier to Australian ESG investors
Higher cost is not a significant barrier to Australians embracing environmental, social and governance (ESG) investing, according to new research conducted by Investment Trends.
The inaugural ESG Investor Report produced by Investment Trends has revealed that the majority of Australian investors already apply ESG principles when selecting investments (33%) or intend to do so in the future (45%).
Commenting on the findings, Investment Trends head of research, Irene Guiamatsia said that the pandemic and social movements like black lives matter along with bushfires and droughts had prompted Australians to closely examine how their actions impact the world around them.
“Increasing, many are realising how they allocate money plays a vital role in supporting positive initiatives or avoiding harmful outcomes,” she said.
Guiamatsia said that there was a common misconception that ESG investing involved a trade-off involving sacrificing returns or accepting higher fees.
However she said current ESG investors were unperturbed in their endeavour to align their portfolio with their values and principles with the majority (81%) believing the long-term performance of ESG investments would be comparable or better than non-ESG equivalents.
“Ultimately, the proof will be in the returns,” Guiamatsia said. “As we march towards the 2050 target for net zero emissions, climate risk impact and ESG factors will increasingly become material in any well-considered long-term investment strategy.”
Recommended for you
First Sentier Investors chief executive, Mark Steinberg, is set to depart the asset manager after seven years.
Metrics Credit Partners has completed the acquisition of Taurus Finance Group and BC Investment Group as it looks to launch consumer lending arm Navalo.
AMP has announced to the ASX that it is being sued by property fund manager Dexus regarding the sale of its real estate and domestic infrastructure equity business.
Having seen inflows of US$5.6 billion to its fixed income funds in the last quarter, Janus Henderson has closed on a deal with life insurer Guardian to secure funds to boost its product development.
