Responsible Investment Funds continue their strong performance



Funds using responsible investment strategies are performing strongly when compared with the average large cap Australian, international and balanced fund.

These are the results from Responsible Investment Association Australasia (RIAA), which has just released its’ 2018 Benchmark Report.

What’s in the latest report ?

The RIAA 2018 benchmark report indicates that:

  • For 2017, more than half of all professionally managed assets in Australia now utilise a responsible approach to investing use, that is :

one that systematically considers environmental, social and corporate governance (ESG) and/or ethical factors across the entire portfolio” and that,

  • A responsible approach to investing is increasingly seen to represent the minimum standard of good investment practice in Australia.


RIAA also distinguishes a Broad and Core RI approach to investing as:

  • A Broad approach sees investment managers explicitly include ESG factors into traditional financial analysis as part of a mainstream investment offering.

  • The Core approach can use many strategies in deciding how to invest such as positive and negative screening, a sustainability focus and impact investing (which primarily addresses social concerns)


How about fund performance?

Funds with Core RI strategies are continuing strong performance .

(Please see data details for Core Responsible Funds [CRFs] at the end of this blog)


  • Australian CRFs outperformed the average large cap Australian share funds over 3, 5 and 10 years ( as for the previous year)


  • International CRFs outperformed large cap international funds over 1 and 3 years, and matched 10 year performance


  • CRFs (balanced) outperformed equivalent mainstream balanced funds over 3,5 and 10 years.



So what factors are influencing the growth of responsible investment ?

Asset managers have attributed growth to:

  • An understanding that considering ESG will have a positive impact on performance, and

  • More demand from investors.

However there is are concerns with:

  • Lack of understanding and advice, and

  • People’s general lack of awareness.


Next steps:

Call for a quick chat or drop us a line to find out more about getting your savings working in line with your goals and ethical beliefs.


Performance of Core responsible
investment funds in 2017 (after fees) *
Australian share funds 1 Year 3 Years 5 Years 10 Years
Average responsible investment fund
(between 8-14 fund sample)
11.30% 9.80% 11.70% 5.40%
Large-cap Australian share fund average 12.20% 8.00% 9.70% 3.50%
S&P/ASX300 accumulation index 11.90% 8.80% 10.20% 4.00%
International share funds 1 Year 3 Years 5 Years 10 Years
Average responsible investment fund
(between 8-27 Fund sampled)
15.20% 10.60% 16.10% 5.40%
Large-cap international share fund average 14.70% 10.30% 16.90% 5.40%
MSCI World ex-Australia Index 13.40% 11.00% 18.40% 6.30%
Multi-sector growth funds (Balanced ) 1 Year 3 Years 5 Years 10 Years
Average responsible investment fund
(between 9-13 funds sampled)
9.60% 7.00% 9.50% 4.50%
Multi-sector growth fund average 9.60% 6.50% 8.90% 4.10%


* Analysis by RIAA and KPMG of

all Australian

asset managers that are signatories to the

PRI (UN backed Principles for Responsible

Investment); other asset managers that

RIAA’s database indicates as practicing ESG

integration; and a selection of international

asset managers with a strong presence

in this market and strong ESG credentials

that manage assets for local clients.