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Ethical investments growing in popularity

17 November 2009 / by Andy Davies

Investors are becoming more socially aware according to new research from YouGov, which suggests that almost half of investors would like their investment to have positive impact on society.

However, the research conducted by YouGov has revealed that at present only eight per cent of investors currently hold an ethical investment or savings product.

According to UKSIF – the sustainable investment and finance association, women tend to have a more ethical outlook on investments than men, while the older generation of investors appear to be the most keen to invest ethically.

In addition, UKSIF has revealed that around one in 10 investors said they would consider an ethical investment if their financial adviser raised it with them.

Meanwhile a quarter of investors believe that the Government should make it compulsory for financial advisers to ask investors if they are interested in a green investment.

Commenting, Penny Shepherd, chief executive of UKSIF, said: "The fact that people are calling for greater access to financial advice and better information on green and ethical investment is something we should all take on board throughout this week and beyond.

"Clearly there are advisers that excel in advising on green and ethical investment. However, for many there remains an excellent opportunity to improve their knowledge in this area and include it in their overall client proposition."

Mike Fox, fund manager at The Cooperative Asset Management, believes YouGov's research shows that investors are "significantly more interested in ethical and sustainable investments" once they have a greater understanding of them.

"Many of the areas targeted by these funds are being increasingly cited by the wider investment community as those offering some of the best potential for long-term growth, such as global power shortage and ageing populations.  

"We believe that addressing this need to increase investor understanding - and not just with those of an ethical persuasion – is a good opportunity for intermediaries," he said.

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