UK Ethical Funds Hit New Record
Monday, June 14, 2010

The amount of money invested in the UK's green and ethical funds has reached a record high of GBP9.5bn (USD13.85bn), as more investors seek to make a positive difference to the world in the post-credit crunch age.

This figure represents approximately three-quarters of a million investors in ethical funds, up from around 200,000 investors in 1999 when around GBP2.4bn was invested ethically in the UK, according to EIRIS, the London-based non-profit sustainable investment specialists.

There are now almost 100 green and ethical funds available to UK investors, representing four-fold growth in the number of funds over the last decade.

EIRIS’s recent Ipsos/MORI survey of investors' post credit-crunch attitudes to ethical finance  found that 44% of the British public are interested in finding out about the ethical credentials of the next financial product or service that they buy. Three-quarters of those interested also said they are likely to take this into consideration when next buying a financial product or service.

Mark Robertson, EIRIS spokesperson said:

"2010 is a critical year for rebuilding public trust in UK financial institutions. It’s clear that increasing numbers of consumers are turning to those financial institutions which offer financial products that make money whilst making a positive difference to the world."

"The world is changing fast and many of the issues targeted by green and ethical investment funds such as the need to tackle ageing populations, reduce levels of obesity, address the global power shortage, tackle water scarcity and climate change are creating attractive business opportunities, which in turn are creating great investment opportunities which consumers can take advantage of."

Another report has highlighted the growing number of investment boutiques offering sustainable investments. ‘The Future of Investment: Sustainable Investment Boutiques,’ published on June 10 by UKSIF, the sustainable investment and finance association, demonstrates the broadening range of asset classes, geographical opportunities and sustainability themes that are becoming available 

“These innovative new firms are developing strong investment products to deliver excellent returns for investors by tackling sustainability challenges," said Penny Shepherd, chief executive of UKSIF.

"This report should help institutional and high net worth investors and their advisers to understand the approaches available. It provides insight into the growing sophistication of sustainable investment and the breadth and depth of sustainable investment opportunities," she added.