- Switzer Report - https://switzersuperreport.com.au -

Make money and feel good

Key points

  •  More people are investing in ways that factor in environmental, social and governance factors.
  • Core responsible Australian equities investment funds outperformed the ASX 300 index and the large-cap Australian equity fund average over 1, 3, 5 and 10 years.
  • When looking for an ESG fund, focus on those that have established records.

 

The Australian National University’s decision this month to sell its fossil-fuel investments sparked an outcry. Although tiny, the $16 million divestment elevated the stakes in ethical investing and brought environmental considerations in investment decisions to the fore.

The move also raises questions about whether a stringent approach to responsible investing sacrifices long-term returns – a critical issue for a growing number of retail investors who want to invest with their conscience, rather than only their wallet.