POWERED BY MOMENTUM MEDIA
Impact investing set to grow ESG focus
Impact investing is set to grow to 1 per cent of global assets by 2019, and in conjunction with a focus on diversity and a broadening of environmental, social and governance (ESG) mandates, will drive the increased use of ESG strategies over the next decade, according to AXA Investment Managers.
Global head of responsible investment for AXA IM Matt Christensen said the impact investing market was predicted to grow to US$500 billion by 2019 and could be viewed as a complement to the limits of traditional philanthropy and government programs.
“The market is still young but its growth has resulted in initiatives that enhance its credibility such as the setting up of standards such as IRIS (Impact Reporting and Investment Standards) or labels such as GIIRS (Global Impact Investing Rating System),” he said.
Christensen said asset classes under which ESG was considered had expanded, including its own use of ESG metrics for sovereign debt portfolios to assess countries’ creditworthiness, risks and opportunities - metrics which were currently used in the company’s responsible investment funds but that would be broadened to its mainstream funds.
An increased focus on board diversity with regards to not just gender but also cultural diversity would further drive an increase in the use of ESG strategies, according to AXA IM.
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
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.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
93.34 3 y p.a(%)
2
Global X GlobalX FANG+ ETF
37.15 3 y p.a(%)
3
GAM LSA Private Shares AU I
33.96 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
29.68 3 y p.a(%)
5
Plato Global Alpha A
28.73 3 y p.a(%)
