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 |
Editor's Choice
Budget 2024: The Budget by numbers
From delivering a second surplus to reducing government debt, here is a breakdown of the Budget by numbers.
Budget 2024: Cost of living relief takes centre stage
From tax cuts to investment into financial support services, the Federal Budget aims to reduce cost-of-living pressures for Australians.
Budget 2024: Government heeds industry calls to better support women
Between getting super on paid parental leave to improved access to healthcare support for menopause, women received a number of measures in the Budget.
Budget 2024: Chalmers looks to reset aged care, NDIS
The Albanese government is investing $2.2 billion to reform the aged care sector and close to $500 million to put the NDIS back on track.
Products
Featured Profile
Robert De Dominicis
CHIEF EXECUTIVE OFFICER
GBST HOLDINGS LIMITED
GBST HOLDINGS LIMITED
It was during a family sojourn to the seaside town of Pescara, Italy, Rob DeDominicis first laid eyes on what would become the harbinger of his future. Andrew McKean writes.
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.