Responsible Investment News

ESG managed funds outperform

BetaShares Global Sustainability Leaders ETF (ETHI) has shown a return of 27.9% over the past 12 months to the end of August, and returned 23.5% pa over the past three years. Australian Ethical's Emerging Companies Fund has returned 20.6% over the past 12 months and 19.4% over the past three years.

The Rainmaker Wholesale Managed Funds performance report benchmarked a universe of 44 funds against two indices: the S&P ASX200 Accumulation Index, which was down - 5.1% over the past 12 months, and returned +6.1% p.a.  over the past three years, and the MSCI World ex AU- Index, which had a return of 7.3% for the past year and 13.2% over the past three years.

The average ESG managed fund in Rainmaker's data set returned +2.3% in the past 12 months, and 7.5% over the past three years. The universe contains a mix of equity, bond, and diversified strategies covering both Australian and global markets.

Australian Ethical's Emerging Companies Fund invests in small cap companies that accord with the fund manager's ethical charter. It had $85 million in AUM to the end of August, and is overweight in companies associated with the healthcare and IT sectors, which have performed strongly in 2020, said Andy Gracey, portfolio manager, Australian Ethical investment.

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