EUROPE - Pension funds in Germany, France and Switzerland have shown the fastest growth in core socially responsible investing (SRI), according to a new study.
 
The European Responsible Investor Forum (Eurosif), whose affiliated members include ABP, Mercer and KBC Asset Management, found in its latest study on SRI in Europe the UK and the Netherlands hold the largest market share of the sector, while in the Netherlands and Belgium, Core SRI has the largest market share of the domestic asset management industry.

Core SRI is composed of the ethical exclusions, where more than two negative criteria are applied, as well as positive screening, including best-in-class and SRI theme funds, or a combination of ethical exclusion and positive screening.

The European SRI Study 2008 found European SRI has accelerated its growth since the last study two years ago, in both the core and also the broad segment, which included simple screening, engagement and integration.

"This corresponds to a remarkable growth of 102% since 31 Secember, 2005 - a compound annual growth rate of 42%," said the organisation.

The growth is mainly driven by an increasing demand from institutional investors and a further mainstreaming of SRI into traditional financial services.

Institutional investors now account for 73% of the total SRI AuM.

According to Eurosif, total SRI assets under management (AuM) in Europe reached €2.665trn by 31 December, 2007, made up of €511.7bn for core SRI and €2.154trn for broad SRI.

If you have any comments you would like to add to this or any other story, contact Carolyn Bandel on +44 (0)20 7261 4622 or email carolyn.bandel@ipe.com

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