Nick Dignam from Fortitude Investment Partners shares insights with Lachlan Maddock from Fortitude Investment Partners on how a diversified portfolio in mid-market private equity is structured. The Inside Adviser
The world of alternative investments is at a crossroads. As markets defy expectations and liquidity concerns take centre stage, investors find themselves forced to rethink how they deploy capital in an increasingly complex environment.
Foresters urges investors to take the sustainable path
Member-owned financial services provider Foresters Financial is pushing investors to do the right thing for future generations by looking for the sustainable investment available, with research showing there is growing demand for a growing suite of responsible investment products – in particular from retirees and those invested in the impact their capital allocation will have on future generations.
While some asset classes tend to fall behind in the provision of sustainable investment options, the portfolio of products being made available is widening. Direct access to sustainable fixed income investments, for example, remains challenging, especially in Australia. Here, Foresters is addressing the gap by providing a green bond with only a $500 minimum investment, which the group hopes will “open up” this side of the market.
According to Foresters chief executive Michael McQueen (pictured), the line of sustainable fixed income options is perfect for the growing cohort of older Australians keen on marrying strong, stable returns with a better future for the next generations.
“Research by National Seniors Australia shows that there is pent up demand among this cohort to invest responsibly, and Foresters’ range of Sustainable investment options can help,” McQueen says.
“Not only will this let them to give back to the next generation by helping finance the transition to net zero emissions, but it will give them greater diversification than conventional savings accounts and term deposits, which still do not offer any responsible or sustainable overlays.”
The Foresters bonds, he says, offer just as much investment spread as any on the market, without sacrificing the ability to embed robust sustainable overlays. “Our sustainable options are globally diversified, multi-asset class portfolios invested across growth and defensive assets, such as shares, property, credit and fixed income,” he says.
Foresters provides a sustainable option across all of its bond products, including funeral, investment and education bonds.
“Our members accessing these products can take comfort in the knowledge that every dollar they invest will be aligned with our responsible investment policy,” McQueen adds.
“We have seen significant growth in our Sustainable Funeral Bond, with its member base more than doubling and its funds under management more than trebling in the 2023 financial year. In the last quarter of that financial year, nearly $1 in every $4 invested in a funeral bond was directed towards the sustainable option.”
