The market for responsible investments in Australia has continued to soar in popularity to $1.2 trillion in 2020. Responsible investment assets are growing at 15 times the rate of overall Australian professionally managed investments. The findings were made in a landmark annual study from the Responsible Investment Association Australasia (RIAA).
The RIAA report shows that the Australian responsible investment market increased to $1,281 billion in 2020 from $983 billion in 2019.
Funds engaging in leading practice responsible investment have seen an explosion in assets under management, growing 30% in 2020. This movement of capital has come at the expense of the remainder of the market, which has seen the value of assets shrink by 11% ($234 billion).
‘Investment managers committed to responsible investment and leading practice are seeing money moving across into their funds, while those with ineffective policies and poor processes are being left behind as the capital moves out,’ said Nicolette Boele, Executive, Policy and Standards for RIAA.
The RIAA report reinforces that responsible investments make good financial sense. In 2020 responsible investment international share and multi-sector growth funds performed on par with the market, even though the impact of COVID-19 on economies worldwide.
To read more, see the CEFC website.