IFM launches low carbon/ESG strategy
Industry Funds Management (IFM) has announced an environmental, social and governance (ESG) and low carbon strategy that draws on IFM's indexed Australian equities process.
The new strategy is designed to help institutional investors reduce their exposure to companies that pose ESG and carbon risks, according to IFM listed equities executive director Aidan Puddy.
"A low carbon version of a portfolio can be engineered to deliver 50 per cent of the carbon emissions of an equivalently sized portfolio invested in the Standard & Poor's/ASX 200 Index," said Puddy.
Industry super fund HESTA is one of the first institutions to take up the strategy, having already awarded IFM a $100 million mandate.
The strategy utilises MSCI ESC Research's quantitative dataset and research to integrate ESG factors into the investment process, according to IFM.
"We chose MSCI following an in-depth analysis of a number of providers, based on data quality, coverage and methodology," said IFM listed equities director Laurence Irlicht.
"MSCI consistently rates highly on each of these measures," he added.
IFM director of sustainability and responsible investment, Azhar Abidi, noted the significant risks that ESG and carbon issues can create for investors.
"Listed companies face potential cost impositions from carbon pricing, as well as from poor governance, labour relations or environmental practices.
"In a rapidly changing regulatory environment, IFM is committed to giving investors the strategies they need to invest responsibly," said Abidi.
AUTHOR
Staff Writer
Money Management staff writers are writers who contribute to the website from time to time. If you would like to discuss the content contained within this article please contact us.
Recommended for you
Ethical super fund Australian Ethical has announced the appointment of Anthony Lane as chief operating officer.
The structural shift towards active ETFs will reshape the asset management industry, according to McKinsey, and financial advisers will be a key group for managers to focus their distribution.
ASIC has warned that practices across the $200 billion private credit market are inconsistent and, in some cases, require serious improvement.
A surge in electricity prices has driven the monthly Consumer Price Index to its highest level in a year, exceeding forecasts.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
225.31 3 y p.a(%)
2
Loftus Peak Global Disruption Fund Hedged
120.73 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
72.47 3 y p.a(%)
4
Paradice Australian Mid Cap A
69.09 3 y p.a(%)
5
Global X Ultra Long Nasdaq 100 Complex ETF
61.94 3 y p.a(%)
