Australia’s sustainable responsible investment (SRI) sector has delivered strong returns for the second year running, an industry study has found.
According to the latest AMP Capital SRI Median Study, the SRI median outperformed the benchmark ASX 200 index by more than 1.5 per cent over one year, and two per cent in the two years to June 30, 2007.
SRI also outperformed in both value and growth, the study found.
It attributed the steady performance to strong absolute returns, with the SRI median returning 30.2 per cent in one year, 26.7 per cent over three years and 19.3 per cent over five years.
For the first time in the study’s history, five-year return data on all 12 SRI funds was included.
The 12 funds are AMP Capital Sustainable Future Australian Share Fund, Australian Ethical Equities Trust, BT Institutional Australian Sustainability Fund, BT Institutional Ethical Sector Trust, Challenger Socially Responsive Investment, Hunter Hall Australian Value Trust, ING Sustainable Investment Trust, IOOF Wholesale – Socially Responsive Shares Trust, Perennial Socially Responsive Shares, Perpetual Ethical SRI Fund, SAM Sustainability Leaders Australia and Warrakiri Charitable Australian Equities.
Performance was calculated before fees and taxes.
The study drew together the median returns of all 12 funds from both wholesale and retail manager surveys.
In May this year, Colonial First State (CFS) signed a retail distribution agreement with former United States vice president Al Gore’s company Generation.
CFS agreed to add the Generation Global Sustainability Fund on an exclusive basis to its FirstChoice platform.
Generation was co-founded by Gore and former Goldman Sachs Asset Management chief David Blood.
