The latest edition of the Good Investment Review is published today.
The November 2024 review reports that responsible funds have performed comparably well to their traditional peers this year so far and over the last five years, despite rocky global markets. The figures show that it is possible for investors to balance profit with making a positive impact on the planet and society.
It says: “Against this backdrop, responsible Investment funds continue to demonstrate their ability to make comparable returns to traditional investments.”
The review adds that despite “short-term fluctuations,” patient investors who want to do good with their money are well placed for growth over the longer term.
Positioned for ‘enduring growth’
Jake Moeller, Associate Director of Responsible Investment at Square Mile Research, said: “Fashions come and go – even in investments. Yet, despite a challenging period for sustainable fund performance over recent years, it’s clear that responsible investing isn’t just a passing trend. In fact, it’s now positioned for enduring growth..”
He said the key drivers for responsible investing will be increasing regulatory support to combat greenwashing, advancements in technology, and global commitments to reducing carbon.
“Whatever the controversies around events like COP 29, they emphasise ambitious climate finance goals and increased investment in renewables and energy efficiency, encouraging nations to align with sustainable investment pathways,” Moeller added.
This year so far, the ethical Global Equity funds monitored in the review have returned an average of 9.21 per cent compared with 9.95 per cent for all funds in the sector.
Meanwhile, the ethical UK All Companies funds monitored have brought average returns of 6.82 per cent compared with 7.12 per cent for the sector. The Sterling Corporate Bond funds have brought 1.7 per cent returns compared with 2.1 per cent for the sector.
The long-term outlook for ‘good’ investors
The latest review from Good With Money and Square Mile Research explores the long-term outlook for responsible investing.
It includes essential commentary from key sponsors, including:
Baillie Gifford – The opportunity to reap rewards by feeding the world sustainably
Goldman Sachs Asset Management – Green bonds: financing the transition to a low carbon economy
Liontrust – The science of sustainable investing
Ninety One – Powering the AI revolution
Wellington Management – Unlocking the full value potential of stewardship
Good With Money – Why responsible investment is here to stay
Read it here!
