Future Returns: Millennials and Sustainable Investing
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    HOUSE MEDIAN ASKING PRICES AND WEEKLY CHANGE     Sydney $1,613,207 (-0.60%)       Melbourne $969,484 (-0.54%)       Brisbane $991,125 (-0.15%)       Adelaide $906,278 (+1.12%)       Perth $892,773 (+0.03%)       Hobart $726,294 (-0.04%)       Darwin $657,141 (-1.18%)       Canberra $1,003,818 (-0.83%)       National $1,045,092 (-0.37%)                UNIT MEDIAN ASKING PRICES AND WEEKLY CHANGE     Sydney $754,460 (+0.43%)       Melbourne $495,941 (+0.11%)       Brisbane $587,365 (+0.63%)       Adelaide $442,425 (-2.43%)       Perth $461,417 (+0.53%)       Hobart $511,031 (+0.36%)       Darwin $373,250 (+2.98%)       Canberra $492,184 (-1.10%)       National $537,029 (+0.15%)                HOUSES FOR SALE AND WEEKLY CHANGE     Sydney 9,787 (-116)       Melbourne 14,236 (+55)       Brisbane 8,139 (+64)       Adelaide 2,166 (-18)       Perth 5,782 (+59)       Hobart 1,221 (+5)       Darwin 279 (+4)       Canberra 924 (+36)       National 42,534 (+89)                UNITS FOR SALE AND WEEKLY CHANGE     Sydney 8,638 (-81)       Melbourne 8,327 (-30)       Brisbane 1,728 (-19)       Adelaide 415 (+10)       Perth 1,444 (+2)       Hobart 201 (-10)       Darwin 392 (-7)       Canberra 1,004 (-14)       National 22,149 (-149)                HOUSE MEDIAN ASKING RENTS AND WEEKLY CHANGE     Sydney $820 (+$20)       Melbourne $620 ($0)       Brisbane $630 (-$5)       Adelaide $615 (+$5)       Perth $675 ($0)       Hobart $560 (+$10)       Darwin $700 ($0)       Canberra $680 ($0)       National $670 (+$4)                UNIT MEDIAN ASKING RENTS AND WEEKLY CHANGE     Sydney $750 ($0)       Melbourne $590 (-$5)       Brisbane $630 (+$5)       Adelaide $505 (-$5)       Perth $620 (-$10)       Hobart $460 (-$10)       Darwin $580 (+$20)       Canberra $550 ($0)       National $597 (-$)                HOUSES FOR RENT AND WEEKLY CHANGE     Sydney 6,197 (+313)       Melbourne 6,580 (-5)       Brisbane 4,403 (-85)       Adelaide 1,545 (-44)       Perth 2,951 (+71)       Hobart 398 (-13)       Darwin 97 (+4)       Canberra 643 (+11)       National 22,814 (+252)                UNITS FOR RENT AND WEEKLY CHANGE     Sydney 10,884 (-22)       Melbourne 6,312 (0)       Brisbane 2,285 (-54)       Adelaide 357 (-14)       Perth 783 (-14)       Hobart 129 (-14)       Darwin 132 (+6)       Canberra 831 (+15)       National 21,713 (-97)                HOUSE ANNUAL GROSS YIELDS AND TREND       Sydney 2.64% (↑)      Melbourne 3.33% (↑)        Brisbane 3.31% (↓)       Adelaide 3.53% (↓)       Perth 3.93% (↓)     Hobart 4.01% (↑)      Darwin 5.54% (↑)      Canberra 3.52% (↑)      National 3.34% (↑)             UNIT ANNUAL GROSS YIELDS AND TREND         Sydney 5.17% (↓)       Melbourne 6.19% (↓)     Brisbane 5.58% (↑)      Adelaide 5.94% (↑)        Perth 6.99% (↓)       Hobart 4.68% (↓)     Darwin 8.08% (↑)      Canberra 5.81% (↑)        National 5.78% (↓)            HOUSE RENTAL VACANCY RATES AND TREND       Sydney 0.8% (↑)      Melbourne 0.7% (↑)      Brisbane 0.7% (↑)      Adelaide 0.4% (↑)      Perth 0.4% (↑)      Hobart 0.9% (↑)      Darwin 0.8% (↑)      Canberra 1.0% (↑)      National 0.7% (↑)             UNIT RENTAL VACANCY RATES AND TREND       Sydney 0.9% (↑)      Melbourne 1.1% (↑)      Brisbane 1.0% (↑)      Adelaide 0.5% (↑)      Perth 0.5% (↑)      Hobart 1.4% (↑)      Darwin 1.7% (↑)      Canberra 1.4% (↑)      National 1.1% (↑)             AVERAGE DAYS TO SELL HOUSES AND TREND         Sydney 29.8 (↓)     Melbourne 31.7 (↑)      Brisbane 30.6 (↑)        Adelaide 25.2 (↓)       Perth 35.2 (↓)     Hobart 35.1 (↑)      Darwin 44.2 (↑)        Canberra 31.5 (↓)     National 32.9 (↑)             AVERAGE DAYS TO SELL UNITS AND TREND         Sydney 29.7 (↓)       Melbourne 30.5 (↓)     Brisbane 27.8 (↑)        Adelaide 22.8 (↓)     Perth 38.4 (↑)        Hobart 37.5 (↓)       Darwin 37.3 (↓)       Canberra 40.5 (↓)       National 33.1 (↓)           
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Future Returns: Millennials and Sustainable Investing

Millenials are more eager than any group to invest funds sustainably according to their value.

By Rob Csernyik
Wed, Nov 24, 2021 2:11pmGrey Clock 4 min

They’re about to inherit a US$30 trillion wealth transfer, and more eager than any group to invest funds sustainably according to their values. But millennials are still the biggest believers that doing so means facing a financial tradeoff, says a new report.

Last month, Morgan Stanley’s Institute for Sustainable Investing published its fourth Sustainable Signals white paper, which surveyed 800 American individual investors 18 and over with minimum investable assets of US$100,000. Just over a quarter were millennials aged 25-38.

The findings show sustainable investing interest is reaching new levels, even with the economic uncertainty caused by the Covid-19 pandemic. Millennial interest in sustainable investing grew by four points to 99%, compared to a six point decline to 79% among the general population.

Yet there’s a paradoxical finding: Despite record levels of interest, more millennials—83% opposed to 70% in the general population—believe the debunked “trade-off” myth that sustainable investing means sacrificing returns.

For Matt Slovik, head of global sustainable finance at Morgan Stanley, it was one of the most interesting findings of the survey.

“This shows that if you look at the percentage of millennials that are interested in sustainable investing, there’s a real desire and recognition that finance can do more,” Stovik says. “And there’s more to finance than simply focusing on the return aspect.”

Morgan Stanley found no trade-off between financial performance between sustainable and traditional U.S. equity funds between 2004 and 2020, and as millennial investors become more educated and move into this investing arena they have the power to transform it.

Slovik spoke to Penta about some of the most surprising insights the survey unearthed about millennial investors.

New Face of Financial Consumption

“There’s a desire to consume finance in many of the same ways that millennials and others have really taken to clothing and food and other things in their lives,” Slovik says. Just as millennial investors ask questions about impact, sourcing, and production when shopping for themselves, they’re starting to look at their portfolios with a similar fine tooth comb. “I think that the finance and the integration of sustainability considerations is a natural evolution outgrowth of that trend.”

Slovik said multiple factors contribute to these changing habits, from the way millennials drive consumption, to where they were in life during the financial crisis, to the impacts they’re seeing from climate change.

“All of that really informs the fact that the data seems to suggest that they’re thinking holistically and more broadly about their investments than I think we’ve seen broadly and historically,” he says.

Greenwashing Won’t Cut It

It’s not just that millennial investors are looking for key data, there’s a higher watermark for what they find. Millennial investors have more sophisticated demands for what it means to do environmental or sustainable good, and lower tolerance for greenwashing, where companies make green claims that aren’t backed up through practices.

Sustainable Signals uncovered a growing concern over how authentic a firm’s ESG activities are. On a question about barriers to including sustainable investing for individuals the second place answer was brand new to this year’s survey: “concerns about authenticity or greenwashing.” (A third, also new, was “lack of tools to measure sustainable impact.”)

“As the market has evolved and matured, investors are focused on understanding what it is that they’re getting,” Slovik says. Though he says we’re entering a clear “data age of ESG” investing, thanks to increasing disclosures from companies and a growing number of data providers, he adds this is still in early days.

Among the resources available to investors, he says, is Morgan Stanley’s own Impact Quotient (or IQ) program that helps provide additional transparency for clients on over 100 environmental or impact preferences.

“As people are better able to understand the impact or exposure or alignment of their investments, you’re also seeing a desire to bring those in line with personal or organizational mission and goals,” Slovik says.

Money Follows Social Movements

Though climate change is still a top concern for millennial investors, there’s evidence that their definition of sustainability is expanding.

“Millennials are looking for more out of finance, and I think this idea of sustainability really does connect with the way that they seem to see the world more broadly,” Slovik says. Two things which have impacted that world view recently have been the pandemic and the racial justice movement.

The pandemic shifted investors’ thematic priorities when it comes to sustainability. Covid-19 led millennials to a heightened interest in addressing public health through their investment activity (69% of millennials compared to 61% of the general population) as well as supporting small businesses (68% to 61% of the general population).

Millennials believe their money has the power to change. The previous Sustainable Signals paper noted 85% of millennials believe their investments could influence climate change, and 89% that their investments could lift people out of poverty.

The 2021 report also finds 75% of millennial investors have made or plan to make investment changes within 12 months in response to racial justice movements. Comparatively, only 50% of the general population planned to do the same.

Slovik says this trend has accelerated since last summer, though it existed before. This type of investment shift can include “supporting diverse-owned, or -run asset managers, to thinking about how individual companies may either excel or lag related to racial equity records,” he adds.

Reprinted by permission of Penta. Copyright 2021 Dow Jones & Company. Inc. All Rights Reserved Worldwide. Original date of publication: November 23, 2021.



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The Top 10 highest paid CEOs of the ASX 200 revealed

Along with pay rates, the latest report from the ACSI shows bonuses are no longer based on exceptional results

By Bronwyn Allen
Tue, Jul 23, 2024 2 min

The CEOs of the ASX 200 were paid a little less in FY23 compared to the year before, but bonuses appear to have become the norm rather than a reward for outstanding results, according to the Australia Council of Superannuation Investors (ACSI). ACSI has released its 23rd annual report documenting the CEOs’ realised pay, which combines base salaries, bonuses and other incentives.

The highest-paid CEO among Australian-domiciled ASX 200 companies in FY23 was Greg Goodman of Goodman Group, with realised pay of $27.34 million. Goodman Group is the ASX 200’s largest real estate investment trust (REIT) with a global portfolio of $80.5 billion in assets. The highest-paid CEO among foreign-domiciled ASX 200 companies was Mick Farrell of ResMed with realised pay of $47.58 million. ResMed manufactures CPAP machines to treat sleep apnoea.

The realised pay for the CEOs of the largest 100 companies by market capitalisation fell marginally from a median of $3.93 million in FY22 to $3.87 million in FY23. This is the lowest median in the 10 years since ACSI began basing its report on realised pay data. The median realised pay for the CEOs of the next largest 100 companies also fell from $2.1million to $1.95 million.

However, 192 of the ASX 200 CEOs took home a bonus, and Ed John, ACSI’s executive manager of stewardship, is concerned that bonuses are becoming “a given”.

“At a time when companies are focused on productivity and performance, it is critical that bonuses are only paid for exceptional outcomes,” Mr John said. He added that boards should set performance thresholds for CEO bonuses at appropriate levels.

ACSI said the slightly lower median realised pay of ASX 200 CEOs indicated greater scrutiny from shareholders was having an impact. There was a record 41 strike votes against executive pay at ASX 300 annual general meetings (AGMs) in 2023. This indicated an increasing number of shareholders were feeling unhappy with the executive pay levels at the companies in which they were invested.

A strike vote means 25 percent or more of shareholders voted against a company’s remuneration report. If a second strike vote is recorded at the next AGM, shareholders can vote to force the directors to stand for re-election.

10 highest-paid ASX 200 CEOs in FY23

1. Mick Farrell, ResMed, $47.58 million*
2. Robert Thomson, News Corporation, $41.53 million*
3. Greg Goodman, Goodman Group, $27.34 million
4. Shemara Wikramanayake, Macquarie Group, $25.32 million
5. Mike Henry, BHP Group, $19.68 million
6. Matt Comyn, Commonwealth Bank, $10.52 million
7. Jakob Stausholm, Rio Tinto, $10.47 million
8. Rob Scott, Wesfarmers, $9.57 million
9. Ron Delia, Amcor, $9.33 million*
10. Colin Goldschmidt, Sonic Healthcare, $8.35 million

Source: ACSI. Foreign-domiciled ASX 200 companies*

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