CFS Thrive+ Sustainable Growth Fund
outperforms with 18.8% annual return

Thursday 28 November 2024 Colonial First State (CFS) is pleased to announce that its superannuation product, the Thrive+ Sustainable Growth Fund has returned 18.8% over the year to 30 September. 

Thrive+ was equal first for performance in the Socially Responsible Growth fund category tracked by Chant West over the year to 30 September 2024 and outperformed all traditional growth funds, according to the report.

The fund’s 18.8% net return over the period was more than 5% above the median, both for Socially Responsible investment growth funds and for growth funds in general.

Now just over two years old, Thrive+ has produced returns that can compete with, and outperform, traditional funds with a similar allocation to growth assets, said CFS Chief Investment Officer Jonathan Armitage.

“Today, investors are more concerned than ever before about issues such as climate change, modern slavery and ethical supply chains,” he said.

“As a result, there continues to be increased demand for investment strategies that can adopt meaningful and measurable sustainability practices to deliver both positive sustainable outcomes and positive performance outcomes.”

Mr Armitage acknowledged that recent political events have created uncertainty for some investors. 

“There is no doubt that we are in a period of change and uncertainty, but when it comes to sustainable investment and Thrive+ our strategy remains the same,” he said. 

“Times of change always create opportunities, and we are actively working with our investment managers to seize those opportunities both domestically and overseas.”

“With Thrive+ we already have exposure to private equity, and we will soon be taking a position in some unlisted infrastructure assets. These investments will both strengthen and diversify the fund, which has benefited from strong gains in equity markets.”

Thrive+ has invested in companies and projects that can play a key role in the climate transition via Just Climate, an investment business dedicated to climate-led investing and a subsidiary of Generation Investment Management. Based in London, Generation was founded in 2004 by partners including Chairman Al Gore and Senior Partner David Blood and has over 190 years of combined investment experience.

The Climate Asset Fund is focused on investing in solutions that will generate outsized emissions abatement while generating attractive risk adjusted returns by providing capital to first-of-a-kind projects like Green steel production, low carbon cement and emerging markets scale-up of wind and solar.

Initial investments have included Swiss-based global electric vehicle (EV) charging leader ABB E-mobility, Swedish green steel start-up H2 Green Steel (now re-named Stegra), Swedish renewable energy firm Meva Energy and Infinitum Electric, which make next-generation electric motors.

Thrive+ is certified by the Responsible Investment Association of Australasia (RIAA) and looks to invest with the intention of supporting certain companies or activities whilst not investing in others, that in the view of CFS and the Thrive+ investment managers, will have an adverse effect on the environment or society.