Sustainable Investing  

Investor appetite for sustainable products remains strong

Investor appetite for sustainable products remains strong

Asset managers are “winning the battle” for sustainable funds, according to Boring Money.

Research from the company’s sustainable investor tracker showed that over the next 12 months, more than half of all fund investors plan to increase their sustainable holdings, with 38 per cent planning to increase their exposure by “a little”.

Just 6 per cent plan to decrease the amount they hold in sustainable funds.

Chief executive of Boring Money, Holly Mackay, said this popularity comes despite concerns over greenwashing.

“We have seen a small backlash from readers who lack confidence in making good choices when it comes to sustainable funds,” she said. 

“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”.

She added that, 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.”

The survey tracked 1,517 UK adults investing in funds, who were questioned in March 2022.

When asked about future asset class allocation intentions, 33 per cent of respondents said they prefer UK equities.