Responsible Investment Funds outperforming the wider market with 37.2% Annual Growth Sep 2021
/The Responsible Investment Managed Funds market, as captured by Plan For Life across Australia and New Zealand, topped the $100bn mark for the first time this quarter, accounting for $101.0bn of Funds Under Management at the end of September 2021, up 37.2% over the past year driven by solid growth in investment markets and record Inflows. On average, annual growth in Responsible Funds has exceeded the wider market by 10.6% p.a. consistently over the past 3 years and total Responsible Funds have not experienced negative quarterly Net Flows over the past 6 years.
Source: PFL Research (ISS MI)
Australian Investment Responsible funds, including both Retail and Wholesale Unit Trusts, account for over 54% of the Responsible market and while posting slower annual growth than the much smaller ETF sub-market, still grew 38.3% which was higher than both the Australian Super and New Zealand sub-markets, and more than double that of the wider Investment market that grew 16.3% over the past year.
The corresponding Australian Super Responsible sub-market increased 29.0% over the latest year and recorded a 5 year CAGR of 15.6% while representing over 24% of overall Responsible Investment Funds Under Management.
ETFs have been slower to embrace Responsible Investment as a focus but are growing rapidly in terms of both FUM and products, now with 25 products making up the current total and FUM rising 131.0% over the past year.
New Zealand Responsible Funds now comprise $16.1bn of Funds Under Management, which is 18.1% of the total NZ Retail market and have defied fluctuating investment markets to post significant growth including a 29.7% 5 year CAGR.
More Information:
