News
09/11/09 - 65% of investors are ethical - they just don't know it!
As many as two in every three investors are unknowingly ethical according to the results of a study out today (9 November) by The Co-operative Investments.
The research – which is released ahead of National Ethical Investment Week - reveals that 65 per cent of investors are interested in sustainable investments once they understand the investment themes and opportunities. This compares to one in five (20 per cent) who express an interest before having had an explanation.
The Co-operative specialises in sustainable investment which seeks investment opportunities emerging from a changing world and a shift in attitudes towards sustainable business practices. Its sustainable funds target companies that are well-placed to benefit from major global changes, including; the economic importance of emerging countries such as India and China; urban regeneration; the global ageing population; and the impact of climate change.
When investors are provided with details of these themes, and their potential for growth, it becomes significantly more appealing to a wider range of investors.
Zack Hocking, Head of Investments at The Co-operative Investments, said: “The study confirms that sustainable investment is attractive to a majority of investors providing they understand the remit and the opportunities.
“It also shows the important role the advice industry has to play in promoting sustainable investments to all consumers and not just those of an ethical persuasion.
“The world is changing. Issues targeted by sustainable investment such as the need to tackle ageing populations, global power shortage and climate change are creating attractive business opportunities, which in turn are creating great investment opportunities consumers can take advantage of.”
According to the survey, the investment themes most persuasive to investors are global power shortage (71 per cent), followed by climate change and technology (both 69 per cent).
Many of the themes targeted by sustainable investment are increasingly being cited by the wider investment community as some of the best offering long-term growth opportunities.
The Co-operative Investments believes a sustainable investment approach is the logical way for ‘ethical’ investing to breakthrough into the mainstream market and increase the current share of less than two per cent of UK assets under management.
It offers a range of sustainable investment funds, including the flagship Sustainable Leaders Trust, which has a proven track record of delivering consistent outperformance. It also offers multi asset cautious-managed and balanced-managed sustainable funds.
To mark National Ethical Investment Week, which runs from 8th to 14th November anyone investing a lump sum into one of the Co-operative sustainable funds before 26 November 2009 will receive a discount of up to five per cent* from the initial charge, usually five per cent. Those interested in investing should telephone 08457 46 46 46 or visit www.co-operativeinvestments.co.uk
Ethical finance products saw inflows of £1.02bn* during 2008. Deposits into ethical bank accounts rose 49 per cent from £571m to £851m. While ethical investments had net inflows of £154m, down from £473m seen in the previous year as the whole investment industry experienced a contraction in new money.
Notes to Editors:
Research conducted by Harris Interactive between 14th and 21st October. 2255 respondents.
*Ethical finance figures are taken from The Co-operative Bank’s Ethical Consumerism which is due to be published in full during December.
- ISDN facilities available for broadcast interviews.
- The Co-operative Investments is a brand name used by CIS Unit Managers Limited which is authorised and regulated by the Financial Services Authority, registered number 188391.
Discount offer
Anyone investing a lump sum before 26 November 2009 will receive a lump sum of up to five per cent: For £7,000 or more there will be a 2 per cent discount on initial charge. For investments of more than £10,000 or more there will be a discount of 3 per cent. While investments over £15,000 will receive a discount of 5 per cent on initial charge.
Date: 9 November 2009
For further information contact:
Andy Hammerton
The Co-operative Financial Services
0161 903 3835
About The Co-operative Financial Services
The Co-operative Financial Services (CFS) is part of The Co-operative Group, which is the world’s largest consumer co-operative with around five million members, over £14 billion turnover, and core business interests in financial services, food, travel, pharmacy and funeral care. The Co-operative Group has over 4,500 retail trading outlets.
Following the merger with Britannia Building Society on 1 August 2009, the new organisation is one of the largest and well diversified mutual businesses operating in both retail and corporate markets.
As part of The Co-operative Group, the new business will be characterised by its unique ethical and member reward policies and very high levels of customer advocacy.
The combined business has £70 billion in assets, 12,000 staff and nine million customers. It has over 300 high street branches, 20 corporate banking centres and a major presence in Manchester, London, Leek, Bristol, Plymouth, Skelmersdale and Stockport. There are also 1,000 face-to-face financial advisers throughout the UK.
It is the only mutual organisation that enables its members to earn financial rewards for the products they hold, as well as giving them the opportunity to have a say in how the business is ran.
