More and more Australians are looking to “future-proof” their super through responsible options, Responsible Investment Association Australasia’s 2014 Benchmark Report reveals.
The comprehensive report into the responsible investment sector found the market has undergone a period of huge growth, with total funds under management in Australia and New Zealand in broad responsible investments increasing by 13 per cent to $153 billion in 2013.
“Between the long-term delivered value, out-performing mainstream funds and increased demand for responsible investments, this report is again putting to bed the myth that responsible investments are the underperforming and undervalued younger brother,” said Simon O’Connor, CEO, RIAA
“Many Australians took a hit in their personal savings during the global financial crisis and are looking for future-proofed investing.
“This report is great news for Australians investing with a focus for financial security, as responsible investments have outperformed average fund returns in all categories over the last five and ten years.”
Highlighting the increased demand for responsible investments, the report revealed that the total assets under management (TAUM) in responsible investment funds had increased for the first time in a decade, from 1.6 per cent to 2.3 per cent.
“Pleasingly, for the first time in a decade, the report shows a small but significant increase in people choosing to invest their money responsibly, with a distinct increase in public demand for responsible investments,” RIAA said.
“With the growing public interest and scrutiny of superannuation, we expect this to be the start of a continuing upward trend.”
Private market assets in super have surged, while private debt recorded the fastest growth among all investment types.
The equities investor has launched a new long-short fund seeded by UniSuper, targeting alpha from ASX 300 equities using AI insights.
The fund has strengthened efforts to boost gender diversity, targeting 40:40:20 balance across its investment teams by 2030.
The lower outlook for inflation has set the stage for another two rate cuts over the first half of 2026, according to Westpac.