The sustainable sustainable fund will double by Christmas
The number of listed funds worldwide targeting ESG and socially responsible investing quadrupled in four years to beyond 2000, according to EPFR Global, a data provider.
The combination of new funds, exceptional inflows and the rise in stock prices thanks to the pandemic has doubled the total assets of these funds over the past year to just under $ 1.5 trillion.
“Financial advisers are receiving more and more requests from people who want to invest with their securities,” said Mr. Cottier.
“It is the younger generations, but also the older ones, who have accumulated wealth and want to use it in a way that helps the younger generation.”
The fund follows the S&P Small Ordinaries small caps accumulation and outperformed the benchmark in the most recent financial year, net of fees. Its 38 percent gain in the year through June 30 was 4.8 percent above its benchmark.
It invests in companies at the heart of the energy transition, such as clean energy groups, as well as in companies from the banking and insurance sectors to software and healthcare which are performing well in terms of ‘ESG indicators.
Meridian Energy, the New Zealand group that skyrocketed late last year, is an asset that helped fuel the fund, in part because it was in an energy exchange traded fund. clean popular among investors looking for a stock market game on Joe Biden’s green policies ahead of the presidential election.
If there is a company with a net zero emissions goal, the first thing they do is ask their suppliers what their net zero plan is.
– Damian Cottier, portfolio manager at Perennial Better Future Trust
The company’s shares have climbed 80% since the start of 2020 to peak in January this year, before slowly slowing down as these ETFs reduced their positions in the group.
“Meridian Energy is one that we own and own at the time. We used [the spike in price] as an opportunity to sell and buy it again when the price has dropped, ”Cottier said.
Other holdings include medical device groups ResMed and Cochlear, health insurer nib, and local fintech Netwealth.
Net zero emissions goals, an increasingly important topic on the global affairs agenda, have also become a central focus of corporate sustainability goals, in part due to a strong push from institutional investors.
A report released Monday by the Intergovernmental Panel on Climate Change, a United Nations body, found that the 1.5-degree rise in global temperatures could strike within a decade. Australia, which has faced severe flooding, bushfires and temperatures in recent years, faces longer and hotter summers.
Despite the government’s refusal to adopt a specific net zero target, Australian companies, encouraged by strident institutional investors, are moving ahead.
“Companies are now proposing net zero targets,” Cottier said.
“It spills over into supply chains and [corporate] global investment decisions. If there is a company with a net zero emissions goal, the first thing they do is ask their suppliers what their net zero plan is.