Australia bucks fossil fuel exclusion trend
Global indices which exclude fossil fuels have outperformed those which include them but this is not the case for Australia.
According to FE Analytics, the MSCI World index returned 110% and the MSCI ACWI returned 109% since inception of the indices on 15 March 2016 to 29 June, 2021, while their ex-fossil fuel counterparts had performed better with returns of 115% and 113% respectively.
However, this was not the case for Australia where the MSCI Australia index returned 74% while its ex-fossil fuel counterpart had returned 65%. It also applied to coal with the MSCI Australia ex Coal index returning 62% over the same period.
The difference was smaller over one year, however, with all three sectors returning 29%.
Looking at the stock exchange, the ASX 200 returned 75% over the same period but the ASX 200 Resources sector returned 164% thanks to the performance of major ASX stocks such as Woodside Petroleum, Oil Search, Santos, and Whitehaven Coal.
The best performer of these stocks was Whitehaven Coal which returned 265% followed by Santos which returned 95%.
AUTHOR
Laura Dew
Recommended for you
With Q1 of the 2025 calendar year coming to a close, the Australian funds management industry has seen a range of major appointments and departures.
Nearly half of wealth managers across the globe say offering access to private market funds is integral to their growth plans, Natixis Investment Managers has uncovered.
Boutique fund manager and responsible investment specialist Pella Funds Management has expanded its offering by allowing direct access to investors in New Zealand for the first time.
The global alternative asset manager has welcomed an experienced distribution lead to its leadership team.
