The Responsible Investment Managed Funds market, as captured by Plan For Life across Australia and New Zealand, accounted for $120.0bn of Funds Under Management at the end of March 2022, up 43.6% over the past year driven by continuing growth in investment markets, which remained positive on an annual basis despite a fall during the latest quarter, and the largest annual Inflows on record.
On average Responsible Funds grew 22% p.a. over the past 5 years compared to 10% p.a. for the wider market, while total Responsible Funds have not experienced negative quarterly Net Flows since 2016.
Australian Investment Responsible funds, including both Retail and Wholesale Unit Trusts, account for almost 50% of the Responsible market and while posting slower annual growth than the ETF and Super sub-markets, still rose 31.9% which was more than double that of the wider Investment market which grew 15.5% over the past year.
The corresponding Australian Super Responsible sub-market increased 78.1% over the latest year (partly due to the inclusion of UniSuper responsible options) and recorded a 5 year CAGR of 22.6% while representing over 30% of overall Responsible Investment Funds Under Management.
Responsible thematic ETFs are growing rapidly in terms of both FUM and products, now with 34 products making up the current total and FUM rising 112.8% over the past year.
New Zealand Responsible Funds now comprise $16.1bn of Funds Under Management, which is 11% of the total NZ Retail market and have defied fluctuating investment markets to post significant growth including a 27.1% 5 year CAGR.
Release published at: https://www.pflresearch.com/news/2021/7/responsible-investment-managed-funds-market-up-318-at-the-end-of-march-2022
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About Plan For Life
Plan For Life, Actuaries & Researchers is a research and analytics business established in 1989, that specialises in the fact-based measurement, analysis and insights into Australian and New Zealand retail and wholesale managed funds, superannuation, retirement and life insurance markets. Plan For Life is an ISS Market Intelligence (ISS MI) brand, a division of Institutional Shareholder Services (ISS).
