The continued turmoil in the financial markets has encouraged investors to reconsider investment behavior and, as a consequence, the investor’s interest has (partly) shifted towards a longer term thinking coupled with an increased appetite for products that can be considered as responsible investing. An inclination towards responsible investing by the EU Commission work can be clearly seen and EU consultations on pension funds, long-term investing and on promoting social investment funds further highlight this trend.
Luxembourg - the leading “Responsible Investing” domicile for funds in Europe
Assets under management in European responsible investment funds see compound annual growth of 25% between 2012 and 2014, according to the ALFI/KPMG 2015 European Responsible Investing Survey.
Commenting on the survey, Jane Wilkinson, partner and head of sustainability, KPMG Luxembourg, said: “We are pleased to see the results of this survey reflecting a growth and dynamism of this sector and that product innovation and a set of promising opportunities, for example the development of green and social bonds, have been identified. It is clear that asset managers today can no longer choose to ignore this market segment - they must be prepared to answer questions from their stakeholders around this topic. Failure to anticipate and act upon these questions is likely to result in chances missed and business lost.”
“Whilst responsible investing tends to be niche and institutional, it is ahead of the rest of the market in many ways,” concludes Anouk Agnes. “Responsible investing already focuses on simplicity, transparency, honesty and integrity. It should appeal to the investors of the future, who are already more environmentally and socially conscious. By 2030 responsible investing will move from being a niche product targeting mainly institutional investors to a mainstream investment product, and it’s up to fund managers to seize this opportunity and build their brands on firm “responsible” foundations.”
Download the survey here.
Download the executive summary here.