This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

US Sustainable And Responsible Investing (SRI) Assets Up 22 Percent In Two Years

WASHINGTON, Nov. 14, 2012 /PRNewswire/ -- The new 2012 Report on Sustainable and Responsible Investing Trends in the United States, released today by the US SIF Foundation, finds that sustainable and responsible investing (SRI) accounts for 11.23 percent of all assets under professional management in the United States at year end 2011. According to the report, $3.74 trillion out of $33.3 trillion of investment assets is held by individuals, institutions, investment companies or money managers that practice SRI strategies.

This total, an increase of 22 percent since year end 2009, reflects growing investor interest in considering environmental, community, other societal or corporate governance (ESG) issues to refine how they make decisions as they select and manage their portfolios or raise their voices as shareholders.  Additionally, the US SIF Foundation identified many investors that are beginning to develop their in-house capabilities to analyze ESG criteria; these developments speak to the potential for further growth in the US sustainable and responsible investing market.

Overall Summary

Research was conducted from late April – July 2012 and discovered the following:

  • $3.31 trillion in US-domiciled assets was held by 443 institutional investors, 272 money managers and 1,000-plus community investing institutions that select or analyze their portfolios using various ESG criteria. 
  • $1.54 trillion in US-domiciled assets was held by more than 200 institutional investors or money managers that filed or co-filed through shareholder resolutions on ESG issues from 2010 through 2012.

These two segments of assets, after eliminating for double counting for assets involved in both strategies, yields the overall total of $3.74 trillion .

Main Report Findings

The report found that the total net assets of both mutual funds and alternative investment funds that consider ESG criteria increased significantly:

  • Mutual Funds: $641 billion, a doubling from 2010.
  • Alternative Investment Funds: $132 billion, a 250 percent increase from the corresponding assets identified at year-end 2009.

The report also found sizable growth in financial institutions that have a mission of serving low- and middle-income communities:

  • Community Development Banks: $30.1 billion, a 74 percent increase since 2010.
  • Credit Unions: $17.1 billion, a 54 percent increase from 2010.

The report found that concerns about business ties to repressive or terrorist regimes, other country-specific criteria and interest in corporate governance are the top issues for sustainable and responsible institutional asset owners.

  • Sudan : $1.63 trillion, a 21 percent increase from 2010; Iran : $1.24 trillion, a 180 percent increase from 2010.
  • Corporate Governance: $914 billion, a 161 percent since year-end 2009.

Additionally, the report found a significant increase of institutional investor assets involved in the following ESG criteria, since the last Trends report, published in 2010:

  • Environmental issues: $636 billion, 43 percent increase from 2010. Climate change is now considered by 23 percent of institutional asset owners incorporating ESG criteria. 
  • Corporate Political Contributions and Lobbying (tracked for the first time by the 2012 survey): $459 billion.

"The 2012 Trends report demonstrates that we are moving closer to a sustainable and equitable economy," said Lisa Woll, CEO of US SIF.  "From the growth in mutual funds that consider ESG criteria and increased investment in community development banks and credit unions to increasingly large votes on shareholder proposals and the availability of sustainable investment options across asset classes, SRI strategies are on the rise in the United States.  We are pleased that this report details many important and interrelated trends that indicate that sustainable and responsible investing will continue its impressive growth and impact."

About the Survey

The US SIF Foundation sent a confidential, personalized survey link to approximately 1,100 investment management firms and institutional asset owners identified in previous surveys as practicing SRI strategies or believed to be new entrants to SRI practice. Survey recipients were asked to detail whether they considered ESG issues in investment analysis and portfolio selection, to list the issues considered and to report the value of the US-domiciled assets affected as of December 31, 2011. They were also asked to report their total US-domiciled assets as of year-end 2011 and whether they filed shareholder resolutions or engaged in other shareholder engagement activities. The research team also collected additional data from public and third-party sources.

2012 Trends Sponsors Include

Wallace Global FundBloombergTIAA-CREF

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,976.31 +263.65 1.49%
S&P 500 2,086.24 +25.22 1.22%
NASDAQ 4,947.4410 +56.2220 1.15%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs