Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • May 2019
05

Pension industry told to grasp responsible investment opportunity

Open-access content Friday 31st May 2019

The majority of private investors are now interested in environmental, social and governance (ESG) factors, and many think these are more important than returns.


31 MAY 2019 | CHRIS SEEKINGS
web_investment_funds_iStock-949177924


That is according to a study by Research in Finance, which said there is an untapped opportunity for asset managers to "take responsible investing mainstream".

It found that three in five private investors in the UK think they already invest responsibility or are interested in doing so, with this particularly true among women under the age of 55.

And although 43% of investors are unwilling to sacrifice performance to invest responsibly, 24% said they would be "relatively willing" to do so, and a third are somewhere in between. 

"Investors have realised the ethical impact that fund managers can have in respect of the companies they buy into and engage with," Research in Finance director, Toby Finden said.

"There is a clear message, certainly in respect of the wealth generators under 55, that to fail to offer clients a credible responsible investing service is to consign a business to decline."

The research involved a survey of 1,001 private investors, and found that many are receptive to a range of responsible investment approaches, from ESG integration to thematic investing.

Personal values are the main motivators, cited by 50% of those interested in responsible investment, followed by a desire to avoid harmful companies and industries, mentioned by 46%.

Wanting to have a positive impact and recent developments around climate change were also cited as important reasons to investors.

And Research in Finance said responsible investment could grow even further if more investors were aware of the positive link between ESG considerations and performance.

"Lack of awareness and knowledge is one of the biggest barriers," said head of insight, Annalise Toberman. "Investors understand the ethical, but not necessarily the financial case.

"The problem is compounded by the fact that most wealth managers and financial advisers don't proactively discuss ethical preferences with their clients. 

"There is huge scope for asset managers to help fill the knowledge gaps for private investors." 


Sign up to our free newsletter here and receive a weekly roundup of news concerning the actuarial profession



This article appeared in our May 2019 issue of The Actuary.
Click here to view this issue
Filed in:
05

You might also like...

Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Actuarial Associate Consultant (UK-wide)

England, Manchester, Greater Manchester / England, West Midlands, Birmingham / England, London
£35000 - £53500 per annum + DOE + bonus + benefits
Reference
120865

Origination/ Pricing Analyst (Bulk purchase annuities)

London, England / London, City of London, England
£55000 - £75000 per annum + DOE + bonus + benefits
Reference
120864

Covenant Consultant

Leeds
£60-80k plus bonus and benefits
Reference
120863
See all jobs »
 
 

Today's top reads

 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2021 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited, Level 5, 78 Chamber Street, London, E1 8BL. Tel: 020 7880 6200