Bringing you live news and features since 2006 

SRI established investor methodology has a bright future

RELATED TOPICS​

The popularity of Socially Responsible Investing (SRI) has increased greatly in recent years as more investors are compelled by the desire to partake in "impact investing" – investing money in ways that favourably impact the environment and society while still achieving market-rate returns. 

However, despite the fact that SRI continues to grow at double-digit rates as an asset class, there still exists a large amount of confusion around the approach. Just ask 10 investment managers to define SRI and you'd likely end up with differing explanations and interpretations of this ever-evolving investment strategy.

Discussions on SRI often revolve around easily understandable and recognisable mainstream "do-good" projects like solar or wind farm, but, according to Geneva Capital Principal, R Scott Arnell: "The real SRI opportunities in the next 10 years lie in infrastructure investments in emerging and frontier markets, which are less trendy to discuss due to an overarching lack of awareness and understanding.”

Arnell, an authority on SRI and with a specialised expertise in EM/FM, adds: "New SRI opportunities abound as a result of exploding middle classes in many rapidly growing economies that still have massively un-met needs and little or no legacy infrastructure. The comprehensive and sustained foundational development in these regions is vastly under-reported in the media, at least from an investor's point of view, which is unfortunate since opportunities in this sector can deliver triple-digit returns for equity investors."

What's driving this growth? According to MarketWatch: "Investor demand. Clients, individuals and institutions alike, are increasingly asking for sustainable investing products across all asset classes. In fact, 80% of money managers in the US SIF report cited client demand as the primary motivation for incorporating environmental, social and governance criteria in their strategies." A similar pattern is occurring all over Europe where the Continents policies, strategies, and implementation for Socially Conscious Investing is ahead of US regulations.

Latest News

Saving and investing app, Moneybox, has doubled the number of ETFs available on the platform, in the light of ‘growing..
Global X ETFs has announced the appointment of Ryan O'Connor as its Chief Executive Officer effective as of April 8, 2024. ..
Value-driven structured credit investing firm, Angel Oak Capital Advisors, LLC, has announced the completed conversions of two of its mutual..
Confidence in the continuing strength of bitcoin and Ethereum is driving wider interest in altcoins and other digital assets, according..

Related Articles

Sal Esposito, Zacks Investment Management
Zacks Investment Management started doing investment research in 1978 and in 1992 started its investment management arm, initially with SMAs...
Jeremy Senderowicz, Vedder Price
Jeremy Senderowicz, a member of the Investment Services Group at law firm Vedder Price, has witnessed a steady upswing in...
Graham MacKenzie, Toronto Stock Exchange
The evolution of ETFs has been a multi-decade experience for Toronto Stock Exchange says Graham MacKenzie, managing director, Exchange Traded...
Frank Koudelka, State Street Global Services
ETF data provider and ETF Express data partner, Trackinsight, has published its Global ETF Survey 2024 Report: ‘50+ Charts on...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by