POWERED BY MOMENTUM MEDIA
Trustees can’t ignore ESG
Australian superannuation fund trustees may need to start considering the impact of climate change on their investments, according to BNP Paribas Securities Services managing director, David Braga.
Pointing to a recent US Supreme Court ruling that held that trustees have a fiduciary duty to monitor fund investments including with respect to the impact of climate change, Braga suggested there were potential implications for Australian super fund trustees.
"Sustainability risk is rapidly becoming one of the pillars of risk measurement and management alongside more traditional pillars of market, credit, and liquidity risk," he said.
Pointing to recent research conducted by BNP Paribas Securities Services with the Australian Institute of Superannuation Trustees (AIST), Braga said almost two-third of fund trustees expected the role of environmental, social, and governance (ESG) to increase in the industry.
He also noted recent decisions by institutional investors in Australia to reduce investments in companies they believed contribute to global warming and suggested these various moves were all putting pressure on asset managers and owners to better understand, analyse and modify their holdings to be acceptable to investors.
"This pressure then flows through to the underlying information providers such as the custodian," Braga said.
Recommended for you
Demand from institutional investors was the main driver of growth in Australia’s responsible investment (RI) market in 2023, as the industry continued to gain momentum.
Institutional investors have entered November with their largest pre-election equity allocation in two decades, according to new data.
The sovereign wealth fund remains cautious of the impact of high inflation as it announces a strong return in its latest update.
Australia is becoming increasingly recognised as an attractive investment opportunity against global counterparts, recent analysis has found.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.56 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.06 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.81 3 y p.a(%)
