Nearly two-thirds of financial advisers do not expect socially responsible investments (SRIs) to provide lower financial returns, but nearly half the Australian public is yet to be convinced, according to findings of CPA Australias Confidence In Corporate Reporting Survey.
The Confidence in Corporate Reporting Survey confirmed that while few financial planners were fielding many client inquires about SRIs to this point, 62 per cent expect clients interest to increase, and 35 per cent expect their interest to translate into increased investments over the next five years.
CPA Australias Chief Executive Officer Geoff Rankin said that financial advisers are well placed to raise community awareness of SRIs, and to debunk the notion that they immediately imply a financial trade off for investors.
A recent benchmark study confirmed that SRI funds are more than competitive with those of mainstream funds, he said. In fact, over the past five years, SRI funds invested in Australian shares, for instance, returned nearly 14 per cent per year, whereas mainstream Australian share funds returned less than 11 per cent per year by comparison.'
Last year our survey confirmed that many Australians were willing to accept a lower financial return in order to invest in companies with a good social and environmental reputation. With such strong returns, it seems that they wont have to.
This year we have asked advisers whether such support for SRIs is evident in their discussions with clients. With super choice, Australians now have a real opportunity to speak with their feet by directing their super savings to funds that better align with their financial, as well as social and environmental values, said Mr Rankin.
The Confidence in Corporate Reporting survey 2006 provides a further important perspective to the wider range of work CPA Australia is undertaking in the broad areas of financial reporting, superannuation, financial planning, and sustainability.
The survey provides an illuminating snapshot of the Australian publics thinking on some extremely challenging social and economic issues for business, government, and the Australian community in general, said Mr Rankin.
