New rules curb impact investing for smaller Australian funds
New regulations mean a single large allocation to an impact fund could risk creating underperformance across the fund as a whole making them too risky for smaller funds, say analysts.
New regulation in Australia is curbing the appeal of impact investing – where investments are managed to produce specific positive ESG outcomes – as investors in Asia Pacific trail those in Europe and the US in allocations to the sector.
Australia’s new Your Future Your Super (YFYS) regulations, which came into force in July 2021 in Australia, include annual performance assessments conducted by regulator APRA, with the results published on the government website.
“Prio…
Please sign in or register
for free access to 1 article per month from AsianInvestor’s content and archives of over 16,000 articles.
¬ Haymarket Media Limited. All rights reserved.