Responsible investing - the opportunity for investment professionals
According to figures from the Ethical Investment Research Service (EIRIS), ethical investment in the UK retail market hit a record £9bn as at 31 December 2007. Ten years earlier, the figure was just £1.5bn. The number of vehicles available has grown from less than 25 to almost 100 today.
People call it 'green and ethical investment' or 'socially responsible investment' or 'social, ethical and environmental investment'.
At The Co-operative Asset Management we call it simply responsible investing. Because that's what it is – responsible, informed, prudent.
More and more clients are concerned with what the money they invest does. Does it fund companies that pollute the environment? Or that profit from child labour? Or does it help make the world a better place?
The market is no longer a niche – it's well established and it's worldwide. So why are so few investment professionals taking up the opportunities of responsible investing?
You might feel you've got enough to do without taking on a new 'specialism' – maybe you're thinking 'I'm no green guru'. Perhaps you suspect that 'green' equals low returns, or worry it's all a flash in the pan. Or simply that your clients are 'normal people' and won't be interested.
These are common myths – myths that mean you're missing out on the chance to:
- expand your business
- gain a competitive edge
- enhance your professional profile
- and provide a better service to your clients.
This guide will take you step by step through understanding the opportunities of responsible investing – for you, and for your clients.
- Current estimated total UK consumer spending on ethical goods is £32.3bn, this figure is up 9% in 1 year and has almost doubled over 5 years.i And these consumers, according to market research firm Superbrands, are those with the most to spend .ii
- Around 78% of the assets of the largest pension funds incorporate responsible investing principles into their investment process.iii
i 'Ethical Consumerism Report' Co-operative Bank 2006.
ii 'Business embraces its ethical future' BBC News 1 Nov 2006.
iii 'Your money your choice: A guide to Ethical Investment' Ethical Investment Association & UK Social Investment Forum 2005.
- Responsible investing – the opportunity for investment professionals
- Know your client's values
- Approaches to responsible investing
- Ethical issues at a glance
- Common concerns
- How to evaluate funds
- A closer look at engagement
- A closer look at integration
- How The Co-operative Asset Management can help you
