Super ESG options can outperformBY JAMIE WILLIAMSON | TUESDAY, 13 NOV 2018 12:13PMThe average ESG investment option offered by Australia's superannuation funds outperformed the average MySuper default product in the 12 months to 30 September. Related News |
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David Sharpe
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FINANCIAL ADVICE ASSOCIATION AUSTRALIA
FINANCIAL ADVICE ASSOCIATION AUSTRALIA
A family man, business owner, cricket fanatic and financial adviser, David Sharpe has many facets. One of his biggest legacies, as he steps down as chair of the Financial Advice Association Australia, is leaving the profession stronger than he found it.







I'm not sure if it's a fair comparison to line up shares options next to balanced MySuper defaults. Comparing ESG shares options to standard shares options would be a better comparison, and would show a different story (from a strictly financial perspective)
Focusing on balanced options within workplace super funds, in the year to 30 June 2018 ESG options out-performed regular balanced options on average by 0.7%, by 0.1% pa over three years and by 0.5% pa over five years. Sure it's marginal but that's the point. The message to us at Rainmaker is that well-run investment options be they ESG or regular perform similarly. There are two subsidiary points. First is the massive range that exists within the sector. Eg, over five years, the performance of regular balanced options ranged from 2% pa to 12% pa while the performance of ESG balanced options ranged from 7% pa to 12% pa. Second is that funds should not use ESG as an excuse for under-performance. Put another way, all of us should stop drinking our own Koolaid.