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The burgeoning sustainable superannuation sector continues to underperform its peers, with new data showing ethical funds have delivered lower returns to their members than non-sustainable funds over the past five years.
The median sustainable balanced option delivered average annual returns of 8.3 per cent over the past five years, according to SuperRatings, which was less than the typical balanced option, which delivered returns of 8.7 per cent.
Companies increasingly have to furnish their ESG credentials to attract investors.
Gabriele Charotte
The top-performing balanced option over the past five years was HESTA’s sustainable growth fund, which delivered annual returns of 11.8 per cent to its members, according to data from SuperRatings.
Responsible investment is capturing a greater share of the market and forcing change in corporate and government behaviour, according to a new report.
Consumers are now more likely to judge investment funds by their deeds, not their promises, an expert says.
Photo: 123RF
The biennial
Global Sustainable Review showed that more than a third of funds under management globally were in sustainable based investments, having risen 15 percent over the past two years to be worth $US35 trillion worldwide.
Responsible Investment Association of Australasia chief executive Simon O Connor said the trend had grown and was reshaping the investment sector. This growth is being fuelled by rising consumer expectations, strong performance and the increasing materiality of social and environmental issues - from biodiversity to racial equity to climate change.
Demand for ethical investments rising worldwide - report
Responsible investment is capturing a greater share of the market and forcing change in corporate and government behaviour, according to a new report.
The biennial
Global Sustainable Review showed that more than a third of funds under management globally were in sustainable based investments, having risen 15 percent over the past two years to be worth $US35 trillion worldwide.
Responsible Investment Association of Australasia chief executive Simon O Connor said the trend had grown and was reshaping the investment sector. This growth is being fuelled by rising consumer expectations, strong performance and the increasing materiality of social and environmental issues - from biodiversity to racial equity to climate change.
Teachers Mutual halves home loan products
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Sarah Simpkins
Sarah Simpkins
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Teachers Mutual has unveiled a new streamlined home loan portfolio, slashing its previous six offerings down to three products.
The new range has slimmed the bank’s previous mortgage products into three offerings: Classic Home Loan, Your Way and Your Way Plus.
Teachers Mutual Bank Limited has also introduced new benefits catered to essential workers in education, emergency services and healthcare. If such workers take up the new Your Way Plus package, they will receive a variable interest rate reduced by 0.05 per cent, and if they are a first home buyer, the loan’s annual fees will be waived.
Advisers can play a fundamental role in navigating how clients pursue their goals to incorporate ESG components into their investment portfolios, Brie Williams writes.