The shift to responsible investing

The shift to responsible investing
  • Investment Insight
  • 5 minute read

In January 2021, Close Brothers Asset Management commissioned Censuswide to survey over 2,000 investors across the UK. Those surveyed had an average of £320,000 invested in a general investment account, stocks and shares ISA, self-invested personal pension or share dealing account. Here we explore some of the key findings:

By the end of 2019, 38% of the UK’s assets under management were subject to ESG integration, which includes both pooled vehicles and segregated mandates. There was an 89% increase in investment within responsible funds in the 18 months leading to June 2020; sales for the first half of 2020 were four times higher than in the first half of 2019.¹ PwC Luxembourg predicts that by 2025, more than half of total mutual fund assets in Europe could be sitting in ESG-focused funds.²

Our research shows that this surge in demand is reflective of investors’ priorities. Only around a third (35%) of all investors identified as traditional, in that their only priority when investing is to maximise financial returns. This is truer of men than women, at 40% compared to 31%.

Investor types by priority

Clients who use an adviser are by far the most likely to want to invest responsibly, likely a result of access to increased education and insight. It’s vital that advisers are equipped to meet that demand, by providing solutions that incorporate ethical screens at a minimum; ethical being the top priority for responsible investors.

Investor types by advice

Personal financial planning

Download the full results of the Responsible investing survey 2021

Capital is at risk. Investments can go down as well as up.

¹The Investment Association: UK investment management resilient in the face of headwinds, 24 September 2020.
²PwC report: The growth opportunity of the century.

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