Ethical investments top Australian mandate appointments

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An analysis of the 273 mandate appointments in the year to September 2018 demonstrates the rise of ethical investing.

Rainmaker analysis shows ethical or responsible investments were the fastest growing asset class in the 12-month period.

Allocations grew 58%, though this is partly to European fund managers including ESG in the segment.

The data suggests responsible investment is here to stay, building on analysis by the Responsible Investment Association Australasia that showed ethical investing quadrupled in the three years to 2017. A subsequent report from the group in 2018 showed 55.5% of Australia’s professionally invested assets are now responsibly managed, though to varying degrees.

Meanwhile, Rainmaker’s analysis shows private equity mandates also saw significant growth, rising 45%. Infrastructure (up 23%), international property (up 21%) and hedge funds (up 19%) rounded out the top five.