Alternative Asset Analysis (AAA) has produced research to demonstrate that interest in investing in ethically responsible funds has increased in the United States.
The interest in investing in ethically responsible funds has increased in the US, according to Alternative Asset Analysis (AAA).
The alternative investment advocacy group claims that evidence from a recent report from US SIF Foundation (The Forum for Sustainable and Responsible Investment) indicates that more people are taking an interest in social and environmental responsibility when making their investment choices.
AAA said the report found an 8 per cent rise in the number of funds incorporating environmental, social and governance (ESG) criteria, to a new total of 375. The increase was measured between the beginning of 2010 and the beginning of 2011, during which period the value of the assets under management in these funds rose by an impressive 15.9 per cent to a total of $80.9 billion.
The majority of these funds were either private equity or venture capital funds, while 95 were property or real estate investment schemes. Meg Voorhes, the research director at US SIF, explained, “The purpose of this report was to identify activity in this space, the number of funds, the assets engaged in funds that were considering environmental, social and governance criteria and to explore some of the drivers behind these trends.”
AAA promotes investment in alternative assets and particularly those with interests in environmental and social projects, such as Greenwood Management’s forestry investment project in Brazil. It has welcomed this new report as a sign that these kinds of alternative investments are growing increasingly popular among the general investing public.
Anthony Johnson, the lead analyst at AAA, said, “It’s no secret that alternative investment are looking extremely attractive at the moment, as investors look to diversity the risk in their portfolios. They are also keen to take the opportunity to invest in funds that are actively trying to make a positive difference through helping to fund environmental and social projects."
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New Report Highlights Popularity Of Ethical Funds, Says AAA
November 04, 2011 at 21:10 PM EDT