POWERED BY MOMENTUM MEDIA
ESG investing gains momentum
Global investors are increasingly assigning greater importance to how environmental, social and governance (ESG) factors impact their returns in the long run, according to a report by AXA Investment Managers.
The report said impact investing - which entails investments in businesses or funds that seek to generate social or environmental benefits alongside financial returns - has started to catch the attention of institutional investors globally.
"In the last 12 months we have worked with several European pension funds as well as AXA Group to help them take responsible practices into account more explicitly," AXA IM global head of responsible investment Matt Christensen said.
Whilst the impact investing market is still relatively young, growing client demand has resulted in initiatives that have enhanced its credibility, such as the setting up of impact reporting and investment standards and the global impact investing rating system, Christensen said.
The report also revealed that a number of academic studies have shown there has been no penalty for pursuing a responsible investment approach, which was a concern for some investors in the past.
"Analysing assets according to ESG factors as well as traditional financial factors can uncover risks and opportunities that might otherwise not come to light. Responsible investment analysis is simply a good risk-aware way to manage a portfolio," Christensen said.
AUTHOR
Staff Writer
Money Management staff writers are writers who contribute to the website from time to time. If you would like to discuss the content contained within this article please contact us.
Recommended for you
Economic growth was weaker than expected, once again highlighting an economy largely sustained by population growth and government spending.
In this latest edition, Anna Shelley, CIO at AMP, shares the fund’s approach to current market conditions and where it continues to uncover key opportunities.
The mega fund has announced a $2.2 billion investment in a leading data centre platform, bringing its global real assets portfolio to nearly $60 billion.
In this latest edition, Australian Retirement Trust’s head of global real assets Michael Weaver explains the fund’s approach to finding new opportunities as it surpasses $300 billion in funds under management.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Global X GlobalX FANG+ ETF
33.51 3 y p.a(%)
2
Spire Oaktree Opportunities XI Second Close
32.68 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.62 3 y p.a(%)
4
Spire Oaktree Opportunities XI First Close USD
31.36 3 y p.a(%)
5
Fidante Credit Suisse Global Private Equity
29.60 3 y p.a(%)
