GBST has partnered with Corporate Analysis Enhanced Responsibility (CAER) to launch a quantitative tool to assist superannuation funds and fund managers in managing risk around environmental, social and governance (ESG) issues.
The product provides a set of 12 ESG factors that superannuation funds and fund managers can incorporate into their investment strategy.
According to GBST quantitative data services' Kathy Taylor-Hofmann, the Australian super industry is becoming increasingly conscious of incorporating ESG principles into their investment processes.
As well as providing access to current ESG and human rights-related information, the offering can also identify ASX300 companies that may not meet the ESG principles, allowing fund managers to avoid such companies in the portfolio construction phase.
"Its (the product's) use will not be limited to socially responsible investment portfolios but mainstream equity funds too," CAER chief executive Duncan Paterson said.
Vanguard Super has reported strong returns across most of its investment options, attributed to a “low-cost, index-based approach”.
The fund has achieved double-digit returns amid market volatility, reinforcing the value of long-term investment strategies for its members.
Australian super funds notched a third consecutive year of strong returns, with the median balanced option delivering an estimated 10.1 per cent over the 2024-25 financial year, but an economist has warned that the rally may be harder to sustain as key risks gather pace.
AustralianSuper has reported a 9.52 per cent return for its Balanced super option for the 2024–25 financial year, as markets delivered another year of strong performance despite the complex investing environment.