FLAU - Part 1: Aligning Portfolios With ESG Values In Australia

• Investors are increasingly looking for straightforward ways to align their investments with their personal views on environmental and societal issues.
• While the Global Choice screening process can have a significant impact on the composition of certain industries, our research found that the overall long-term effect on index performance was minimal, and that Global Choice indexes behaved very similarly to their underlying benchmarks (with correlations and betas close to 1 over time).
• Though the correlation briefly dipped below 0.95 earlier in the period, it has stabilized around a high of approximately 0.994 more recently.

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