Source: Responible Investing Association Australasia. Benchmarking Report
According to a recent industry benchmark report, responsible Australian equities funds have outperformed the ASX 300 index over the last 10 years. They’ve also outperformed the average Australian equities fund in the same period.
The same is true for international share funds and multi-sector growth funds. This proves once again that you don’t have to sacrifice returns if you want to invest in line with your values.
You don’t have to sacrifice returns to invest responsibly
The table at the right shows the 10 year per annum returns to 31 December 2013. Past performance is not necessarily an indicator of future performance.
(Source: Responsible Investing Association Australasia, 2014 Responsible Investment Benchmark Report. Available from http://www.responsibleinvestment.org/riaa-research/)
More Australians are investing responsibly
In fact, more and more Australians are demanding responsible investment choices for their money. This growing public interest has been spurred on by groups like 350.org who are asking Australians to reconsider the financial risks of investing in fossil fuels over the long term. They have taken this a step further by asking Australians to change bank accounts if their financial institution is financing fossil fuel projects.
No longer are Australians happy to just sign petitions and attend rallies. They are now making their money accountable too. Certainly this makes good sense as there is little point petitioning against climate change or environmental pollution when you are investing (say via your superannuation fund or directly) in the very companies that are funding or doing the actions you are protesting against.
Get your money working for you, and the planet
Australian investors want to focus on companies and investments that are bringing about positive change to the world – medical technologies, renewable energy advancements, better education, waste management, and water technologies, for instance.
It’s easier than ever before for investors to get the right investments in their superannuation fund or personal investment portfolio. The Ethical Advisers’ Co-operative is a group of Financial Advisers that are accredited by the peak industry body, the Responsible Investment Association Australasia. Atwww.ethicaladviserscoop.org you can locate an adviser that can help you.
Karen McLeod CFP®, is the Chairperson of the Ethical Advisers Co-operative, a board member of the Responsible Investment Association Australasia and an Authorised Representative (242000) of Ethical Investment Advisers (AFSL 276544).