Lonsec Research expands its SRI and emerging markets capabilities
Lonsec Research has intensified its focus on the Environmental, Social and Governance (ESG) and Socially Responsible Investing (SRI) sectors, establishing dedicated investment product coverage and analysis within the rapidly growing space.
Lonsec has provided research coverage on the SRI and emerging markets sectors for a number of years, and the increased focus recognises the growth in ESG as an investment approach and the growing recognition of ESG factors as a source of alpha in investment management.
Lonsec Research’s Steve Sweeney will drive the new research focus as General Manager – ESG/SRI and Emerging Markets Research.
“By formalising and expanding our ESG and emerging markets research capabilities, we are recognising the growing importance of these sectors, both in terms of financial product expansion and the impact they are having within the investment community,” said Lonsec Research CEO Matt Olsen.
“We believe emerging markets research will be a key long-term growth area in financial product issuance, and it fits well with ESG given that governance remains a key risk area in many developing economies. Steve has made a very substantial contribution to Lonsec Research over many years, and his experience and expertise will add real value to this sector.”
Lonsec Research has noted increasing choice within the SRI sector over recent years, with fund managers adding more financial product options and incorporating ESG factors into their investment process across all mainstream asset classes in funds management.
“Socially responsible investing is often categorised as a modest sector, but we have witnessed sustained growth over the past decade,” said Mr Sweeney. “The sector has evolved from a standpoint of avoiding investment in unattractive companies on the basis of values, to embracing sustainability where investors can capitalise on the benefits of ESG analysis to enhance risk awareness and improve performance outcomes.
“There is greater awareness of the impact companies can have on the community and environment, especially among younger investors. As this demographic continues to build wealth, we expect to see more demand for investment options aligned with these values. Our job is to ensure that financial advisers are equipped to meet the investment objectives of their clients, including the identification of high-quality responsible investment products.”
