Helping retirees to meet net zero
Foresters Financial, a member-owned financial services company servicing members and investment communities, is urging investors to consider their sustainable investment options as a mechanism to contribute to a better future for all Australians.
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Key Points
- National Seniors are campaigning for Clean Energy Bonds to give older people a practical way support future generations.
- Foresters Financial expects green bond market to grow strongly in response to increasing demand for environmentally sound investments.
- Research by National Seniors Australia shows that there is demand among older people to invest sustainably
While direct access to products such as green bonds is still relatively limited in Australia, Foresters’ Sustainable Bond products include exposure to these, with a minimum investment of $500.
Foresters says this accessibility will further open up this market, giving more investors the opportunity to “go green”.
Foresters Chief Investment Officer Michael McQueen says although the Australian green bond market lags its European counterparts, he expects it to grow strongly in response to increasing demand for environmentally sound investments.
“We fully support giving retirees and older Australians the opportunity to invest in sustainable products as easily as they can access term deposits,” he says.
“Research by National Seniors Australia shows that there is pent up demand among this cohort to invest responsibly, and Foresters’ range of Sustainable investment options can help.
“Not only will this let them to give back to the next generation by helping finance the transition to net zero emissions, but it will give them greater diversification than conventional savings accounts and term deposits, which still do not offer any responsible or sustainable overlays.”
Mr McQueen – who invested in the inaugural green term deposit, or ESG TD, launched by the Commonwealth Bank in late 2021 – says there is growing demand for sustainable investment options across the spectrum of financial services.
“Our sustainable options are globally diversified, multi-asset class portfolios invested across growth and defensive assets, such as shares, property, credit and fixed income.”
Mr McQueen says Foresters is the only provider of investment bonds that offer members a sustainable option across all its bond products: funeral, education, and investment.
“Our members accessing these products can take comfort in the knowledge that every dollar they invest will be aligned with our responsible investment policy.
“We have seen significant growth in our Sustainable Funeral Bond, with its member base more than doubling and its funds under management more than trebling in the 2023 financial year.
“In the last quarter of that financial year, nearly $1 in every $4 invested in a funeral bond was directed towards the sustainable option.
“The Sustainable Funeral Bond generated a return of 7.3% in 2023 net of fees and taxes.”
Contact Bond expert Jen Liakopoulos on 0499 865 203 to discuss how Foresters can assist. Foresters Financial Limited (ABN 27 087 648 842, AFS Licence No. 241421)
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