ESG

“We spend the majority of our research time on understanding industries,” explained Catherine Allfrey, portfolio manager of Wavestone Capital, when presenting to leading financial advisers at The Inside Network’s Equities Symposium in Perth last month.

As with everywhere else on the globe where they’ve been introduced, exchange-traded funds (ETFs) have grown like crazy in Australia.

It’s been two years since Covid-19 reared its ugly head, sweeping fear and panic across global markets and forcing central banks to release massive amounts of stimulus to safeguard against any further deterioration.

“Have we really thought about the investment implications of a world in which inflation is persistent?” That was the question posed by Dr Joseph Lai of Ox Capital.

“We have seen a monumental shift in the way consumers act in recent years” explained Emilie O’Neill of Perennial Better Future

It appears that regulators around the world are getting more serious on ESG, with the US Securities Exchange Commission, similar to Australia’s ASIC, announcing a number of proposals targeted at the growing trend of ‘greenwashing’.

The events in Russia and Ukraine offered a real time insight into the challenges facing ESG, ethical and sustainable investors around the world.

From Covid to conflict, all it took was just a few weeks for the market to shift its attention to the unfolding crisis in Ukraine and away from the pandemic.

Independent investment consulting firm, Evergreen Consultants, has released findings on the performance of green Australian and international equity funds that have high responsible investment ratings.

“Patience is a virtue” may well be the best way to explain the performance of the Australian sharemarket in the March quarter.

The VIX Volatility Index or Fear Index hit a 52-week high of 38.94 last week after $65bn was wiped off the Australian share market.

ESG investing and everything that comes with it have grown in both popularity and importance in recent years.