Appetite for sustainable funds remains high despite lower investor confidence and understanding
9 June, 2022
New research from Boring Money’s Sustainable Investor Tracker shows which asset management firms are winning the battle for consumer brand buying intentions when it comes to sustainable funds.
Despite greenwashing concerns and emerging global voices on ‘woke capitalism’ Boring Money’s Sustainable Investor Tracker finds that investor appetite for sustainable investing remains as strong as ever:
Over the next 12 months more than half of all fund investors plan to increase sustainable holdings - 38% planning to increase by ‘a little’
Just 6% of investors plan on decreasing the amount held in sustainable funds
Appetite remains higher with the pre-retirement investor audience – more than half of retirees report that they are planning to make no change when it comes to sustainable investments
In terms of future asset class intentions, UK equities remain the favoured choice (33%), but sustainable funds come close with 25% of all fund investors reporting that they are planning to increase the amount they have invested in the sustainable sector.
Uncertainty and confusion remain strong and larger retail brands have the edge when it comes to future intentions. The top 8 brands which fund investors report that they would consider when it comes to sustainable investments and funds are:
Hargreaves Lansdown Fund Managers
AXA Investment Management
Aviva Investors
Fidelity
Vanguard
JP Morgan
HSBC Asset Management
Royal London
Base: 1,517 UK fund investors aged 18+
Boring Money CEO Holly Mackay comments, “We have seen a small backlash from readers who lack confidence in making good choices when it comes to sustainable funds. Interest and appetite remain consistently strong but investors struggle to reconcile some individual holdings in funds with expressed purpose, particularly around corporate tax avoidance and fossil fuels”.
“With a few exceptions, the brand consideration in this poorly understood sector is less about confident, active preference and more a sign of investors keeping their fingers crossed that familiar household brands will have proper controls in place to do what they claim to. There’s still everything to play for in creating a trusted brand which retail investors favour for sustainable investing.”
Notes to editors:
1. Boring Money is an independent research and publishing house which provides information, tips and Best Buy tools to savers and investors. Currently, the website has over 200,000 monthly readers.
The business conducts regular research with industry providers and UK consumers to track the developing DIY investment market from both the customer and provider perspective. Boring Money holds test accounts with over 25 investment platform providers. It also holds regular focus groups and interviews with consumers to ensure regular input and feedback from the user perspective.
Founder Holly Mackay has worked in the investment industry for 20 years and is supported by a team of 28 researchers, analysts, technologists and marketing execs. Boring Money is not regulated to give personal financial advice nor is it regulated by the industry watchdog.
2. Details of Sustainable Tracker – Survey of 1,517 UK adults investing in funds conducted at the end of
