RIAA benchmarking report confirms strong performance of ethical investment



August 11, 2015

Australian Ethical has welcomed the outcome of the latest Responsible Investment Association of Australia (RIAA) benchmarking report, saying the results reflect an increasing demand for responsible investment products. The report also confirms that responsible investment performance is consistently competitive – busting the myth that investors need to compromise good performance to invest in accordance with their values.

As the report indicates, there is a spectrum of responsible investment categories by which fund managers can promote themselves. Australian Ethical is classified as ‘core’, which is the most stringent of the categories, with only 5% of fund managers included in the report listed in this category.

Phil Vernon, Australian Ethical Managing Director, said the RIAA report mirrors Australian Ethical’s own experiences of good performance, as well as increased inflows, funds under management (FUM) and customer numbers.

Australian Ethical’s FUM has grown to over $1.1billion and inflows increased by 250% over the 12-month period to 31 December 2014 (the same period as the RIAA Report). Inflows since that time have continued to increase with the six months to 30 June 2015 showing an 85% increase over the same period the previous year.

“Our track record supports RIAA’s conclusion that responsible investing is not only the right thing to do, but the smart thing to do,” said Mr Vernon.

“Investors are taking more interest in ethical and responsible investment and we’re seeing this in our own experience. There is a rising social consciousness amongst consumers and investors in general and a demand for products and services that align with their values. Where this may have previously come from a small section of the population, today it is far more mainstream.

“Our growth can be attributed to an increase in interest in ethical investing, together with our strong and consistent long-term performance.

“Many of our funds are performing at the top of their sector over many periods, and our Australian Shares fund continues to top the Mercer performance table quarter after quarter,” said Mr Vernon.

Source: Australian Ethical

Cut & Paste conveys information received directly from the organisations concerned. Statements and releases published here have been selected for their relevance to the financial planning profession. They are generally unedited, and the views expressed do not necessarily reflect those of Professional Planner.


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What is Cut + Paste? Cut + Paste contains news releases, statements and other information from organisations active in financial planning and related areas. Its aim is to convey that information to you directly from those organisations. Everything published in Cut + Paste has been curated for its relevance and topicality; otherwise, it is predominantly unedited. The views expressed in Cut + Paste do not necessarily reflect those of Professional Planner. To learn more, please click here.

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