Higher fees no barrier to Australian ESG investors
Higher cost is not a significant barrier to Australians embracing environmental, social and governance (ESG) investing, according to new research conducted by Investment Trends.
The inaugural ESG Investor Report produced by Investment Trends has revealed that the majority of Australian investors already apply ESG principles when selecting investments (33%) or intend to do so in the future (45%).
Commenting on the findings, Investment Trends head of research, Irene Guiamatsia said that the pandemic and social movements like black lives matter along with bushfires and droughts had prompted Australians to closely examine how their actions impact the world around them.
“Increasing, many are realising how they allocate money plays a vital role in supporting positive initiatives or avoiding harmful outcomes,” she said.
Guiamatsia said that there was a common misconception that ESG investing involved a trade-off involving sacrificing returns or accepting higher fees.
However she said current ESG investors were unperturbed in their endeavour to align their portfolio with their values and principles with the majority (81%) believing the long-term performance of ESG investments would be comparable or better than non-ESG equivalents.
“Ultimately, the proof will be in the returns,” Guiamatsia said. “As we march towards the 2050 target for net zero emissions, climate risk impact and ESG factors will increasingly become material in any well-considered long-term investment strategy.”
Recommended for you
Selfwealth has provided an update on the status of its scheme implementation deed with Bell Financial Group as well as whether rival bidder Svava remains in the picture.
Magellan Financial Group has reported its first half FY25 results while appointing a new chief financial officer and promoting Sophia Rahmani to chief executive.
Schroders Australia has launched two active ETFs and plans to further expand its listed range over the year ahead.
Platform Netwealth has reported its financial results for the first half of FY25, reporting an 80 per cent increase in net flows, with its CEO viewing a “huge opportunity” from private assets.
