The Ethical Investment Association (EIA) 5th Annual Benchmarking Survey has revealed that sustainable responsible investment (SRI) funds under management in Australia grew from $4.5 billion to $7.67 billion in the year to 30 June 2005, with wholesale portfolios representing 64.2% ($4.92 billion) of this amount.

Over the last twelve months total SRI assets have grown at a rate of 70%, while cumulatively over the last five years they have increased by 2360%.

Growth in the past year has been driven primarily by:

1. large superannuation funds adopting SRI policies for existing portfolios ($1,720m);
2. strong investment returns on invested funds ($785m);
3. capital inflows to established SRI funds ($512m); and
4. capital contributions to new SRI funds ($153m).

The managed fund industry is not the only SRI sector to record substantial increases in funds under management, with providers of SRI community finance growing assets by 28% to $308 million and the SRI portfolios managed by financial adviser increasing 65% to $482m.

In launching the benchmark survey findings, EIA Executive Director, Louise O'Halloran, observed that maturation of the SRI sector brought with it a trend to specialization in product offerings.

"SRI continues to grow and evolve at a very rapid rate. There are more SRI investment methodologies and a greater diversity of asset classes. Now more than ever, it is important that investors are aware of and understand the many SRI options available to them.

"Some product offerings of note include collaterised debt obligations, listed infrastructure funds dedicated to renewable energy and property funds focused on sustainable assets."

This year for the first time, the Survey also conducted an extensive consumer survey regarding attitudes to SRI in a "choice of superannuation" environment. The results showed a solid level of interest which bodes well for the 119 funds that offer a total of 317 SRI options.

The 2005 Annual Benchmarking Survey was been made possible with the generous support of BCU (Bananacoast Community Credit Union Ltd.), Department of Environment and Heritage, and Victorian Government.

For further information:
Louise O'Halloran
Executive Director, Ethical investment Association
Phone: 0412 924 014