POWERED BY MOMENTUM MEDIA
Decarbonising equity strategies
Russell Investments has developed four portfolio decarbonisation strategies without materially affecting investment performance, through research by its equity strategy experts.
Partnering with superannuation fund HESTA, Russell Investments has increased its expertise in factor-based investing to identify the total carbon exposure in a portfolio and has incorporated an assessment of potential stranded asset risk from carbon reserves.
Russell Investments director of equity strategy and research, Scott Bennett, said "the research validated our unique outcome-orientated approach developed to achieve a greater than 50 per cent reduction in the carbon footprint and deliver benchmark-like returns".
The customised strategy has an objective to remain at or below 50 per cent of benchmark carbon dioxide emissions and carbon reserves in a risk-constrained manner, and excludes all exposure to tobacco.
Russell Investments head of strategic partnerships for Australia, Nicki Ashton said the new quantitative equity solution met HESTA's specific requirements to deliver a low-carbon, global equity investment strategy.
"We can apply the same expertise to provide similar customised solutions for a wide range of investment products, including centralised portfolio management, after-tax, single-factor, multi-factor, ESG [environment, social, and governance], and of course low-carbon," she said.
Recommended for you
Equity markets have surged ahead of fundamentals as institutional investors fall behind, according to Ten Cap Alpha Plus.
Local investors are leading the region in plans to boost private market exposure, as demand grows for innovative fund structures, resilient investments, and a more selective approach to alternatives.
Research shows institutional investors are increasingly turning to private credit, but the APAC region’s relatively small market size remains a key constraint.
The global financial platform has completed a Series F funding round, with superannuation funds participating in the round.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
92.15 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
53.24 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
43.15 3 y p.a(%)
4
DomaCom Shoreline North Coogee
36.26 3 y p.a(%)
5
GAM LSA Private Shares AU I
35.87 3 y p.a(%)
