UK ethical investment reaches record high

Thursday, 03 June 2010 10:32

By myfinances.co.uk staff

Investment in retail ethical funds reached a record high of £9.5 billion in 2009, new figures have shown.

Data compiled by research firm Eiris showed that around 750,000 people now have assets in the ethical sector, up from around 200,000 in 1999.

Back then, only around £2.4 billion was allocated to socially responsible investment vehicles.

The firm said the growth in assets under management in ethical funds mirrors an expansion in the number of products on the market from "a couple of dozen" in 1999 to nearly 100 last year.

Eiris added that the trend is set to continue, as an Ipsos Mori poll carried out on its behalf found that following the credit crunch and subsequent economic downturn, 44% of investors are keen to scrutinise the social responsibility of the products and services they use.

The firm's Mark Roberson said: "It's clear that increasing numbers of consumers are turning to those financial institutions which offer financial products that make money while making a positive difference to the world."

Net retail sales of ethical funds during the first quarter of the year topped £16 million, according to figures from the Investment Management Association.

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