Chant West has incorporated responsible investment (RI) classifications into its ratings for superannuation fund investment options, allowing investors to make more informed investment decisions.
The RI classifications mirror those of Zenith Investment Partners and comprise traditional, aware, integrated, thematic and impact categories, with each one designating the extent of the fund’s incorporation of responsible investment factors.
Zenith Investment Partners head of responsible investments, Dugald Higgins, said: “While it’s vital for managers and super funds to be able to measure and demonstrate the role of RI in their investment strategies, it’s equally important that investors can accurately identify which strategies meet with their needs and align with their investment beliefs.
“The fund classification framework across super investment options helps investors understand the integration of a super fund’s RI themes into their processes and the associated impacts on the final portfolio outcome.
“The classification framework is underpinned by a set of principles which is applied by our analysts and overseen by an internal responsible investment committee. We also use our role working right across the industry with a wide range of stakeholders to inform this framework and ensure it remains robust and relevant.”
The classifications would be rolled out across investment options progressively and had already been attached to 70% of investment options in the Chant West super fund universe.
New research has shown that investing in alternative assets and using active management has, to this point, delivered strong results for Australian super funds.
Australia’s $4 trillion superannuation industry is fundamentally reshaping the nation’s external accounts, setting the stage for a more sustainable current account surplus despite weaker commodity markets.
Rest has expanded its portfolio of renewable energy infrastructure by supporting a Victorian solar farm and battery project.
Economic growth was weaker than expected, once again highlighting an economy largely sustained by population growth and government spending.