Popularity of responsible investment funds
Hi all,
I'm looking for quick views on whether the popularity of responsible investment funds among retail and advised investors will continue in the next few years.
Best,
Sally
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We think there will be continued popularity for responsible funds as investors are keen to feel like they are doing their bit to support companies who are doing good things. There can also be a good investment case for investing in companies that are potentially able to charge a premium price for their goods and services which could translate into higher earnings.
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Responsible investment funds have gained significant popularity among retail and advised investors in recent years, and this trend is expected to continue. While some may view this as a fad, the increasing focus on sustainability and social responsibility suggests that responsible investing is here to stay. However, as with any investment strategy, investors must research and carefully consider their options to ensure that their investments align with their values and financial goals.
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It's tempting to think that the recent resurgence in the performance of value stocks and sectors has put a serious dent in the outlook for responsible investment. But nothing about this shorter-term weakness changes the fundamentals of the long-term picture.
The global conversation about environmental, social and governance issues is only intensifying. For example, consider the uproar which greets every release of profit numbers from the oil majors, a subject which ties together all three of these strands. What's more, global policymakers have decisively set the direction of travel on climate policy and we’re not going back.
There is another dimension. Returns are paramount – that is after all why we invest – but personal morality and the desire to do good burns bright in most. If survey data is to be believed, it does so particularly so in the young. Alongside promoting sustainability, that lays the foundation for responsible investment to benefit from a sustainable future itself.
The global conversation about environmental, social and governance issues is only intensifying. For example, consider the uproar which greets every release of profit numbers from the oil majors, a subject which ties together all three of these strands. What's more, global policymakers have decisively set the direction of travel on climate policy and we’re not going back.
There is another dimension. Returns are paramount – that is after all why we invest – but personal morality and the desire to do good burns bright in most. If survey data is to be believed, it does so particularly so in the young. Alongside promoting sustainability, that lays the foundation for responsible investment to benefit from a sustainable future itself.
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"I think people like to invest their life savings responsibly if they are getting returns better or similar to those they would get from traditional investments. If the returns are not comparable then the buzz of responsible investing starts to fade."