Use of sustainable-investing strategies in U.S. assets increases 38%

Demand for ESG or impact-investing climbs more than $3 trillion to hit almost $12 trillion

Oct 31, 2018 @ 10:33 am

By Bloomberg News

More than a quarter of U.S. assets under professional management used sustainable-investing strategies as of the beginning of 2018, a 38% increase from two years earlier, according to a new report.

Sustainable, responsible or impact-investments climbed by more than $3 trillion to hit almost $12 trillion, Washington-based Forum for Sustainable and Responsible Investment, known as US SIF, said Wednesday in a report. More asset managers built environmental, social and governance analysis into their investments, and more shunned firearms holdings, US SIF said.

"We're seeing more demand for sustainable and responsible investing, and more individual issues gaining attention, such as climate risk, board issues, tobacco and transparency," said Meg Voorhees, research director for US SIF. "The institutional portion, in particular, has grown."

Money managers for institutional investors control about $8.6 trillion of the socially responsible assets, while about $3 trillion is overseen for individual and retail investors, according to the study.

(More: Is ESG investing going mainstream?)

Since US SIF began tracking the data in 1995, sustainable and responsible investment assets have had a compound annual growth rate of 13.6%.

0
Comments

What do you think?

View comments

Most watched

INTV

Young professionals see lots of opportunity to reinvent the advice experience

Members of the 2019 InvestmentNews class of 40 Under 40 have strategies to overcome the challenges of being young in a mature industry.

INTV

Young advisers envision a radically different business in five years

Fintech and sustainable investing are two factors being watched closely by some of the 2019 class of InvestmentNews' 40 Under 40.

Latest news & opinion

GPB paid B-Ds and reps steep commissions to sell troubled private placements

GPB paid commissions of 9.3%, or $167 million altogether, on the firm's private placements.

Give us a break, active managers say

Seven portfolio managers share their outlooks for the rest of the year, generally agreeing that it's been hard for active managers to stand out.

GPB Capital reports decline in value of two biggest funds

One has dropped by 25.4% and the other by 39%, according to the company.

6 ways Social Security will change in 2020

As the enormous baby boomer generation continues to march toward retirement, they are straining the resources of Social Security. Here are six ways that the nation’s primary retirement income program will change in 2020.

SEC clears up confusion over whether advisers can continue to call themselves fiduciaries

Despite an agency directive to eliminate the word 'fiduciary' in Form CRS, SEC officials say it's OK to use it.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print