Sustainable investments in the ascendancy

Press release -

Sustainability is the future of investing. This is the prediction of investors with sustainable investments in their equity portfolios, as revealed by ABN AMRO MeesPierson’s recent representative survey. Almost two thirds of respondents believe that sustainable investments will eventually make up the greater part of investment portfolios and will yield higher returns than traditional investments. Over two thirds of sustainable investors said they would continue to expand their sustainable portfolios.

On average, sustainable investors put 36.52% of their portfolios into sustainable investments. A few (8%) in fact invest entirely in sustainability. More than half of all respondents (54%) stated that the returns on their sustainable investments equalled or even outperformed their traditional investments in 2017. On average, respondents estimated that their sustainable investments yielded 10% last year.

Results confirmed in practice

ABN AMRO MeesPierson’s Managing Director Products & Solutions Eran Habets comments, “We also see that ABN AMRO’s sustainable investment portfolios yield least the same returns as traditional investments. ABN AMRO currently manages more than 10 billion euros in sustainable investments, up 23% from last year.”

Returns and idealism

Faith in the returns of sustainable investment is the principal consideration for investing in sustainability, and the reason given by more than a third of the respondents. Idealism is also an important consideration: a quarter of the sustainable investors stated that it is important to do the right thing for the world we live in. Another quarter use sustainable investments as a way of excluding specific investment categories, for example the tobacco and arms industries.

Actively researching information

Almost a third of sustainable investors have an asset manager who handles their investments. For 65% of the investors surveyed, a target company’s website is the most common source for determining whether the company is sustainable and to what degree. Over half of respondents cite a company’s annual report as an important source.

Adding sustainable products

Habets continues, “The bank wishes to contribute to a better world and sees that sustainability is becoming more and more important to its clients. Our ambition is to increase the volume to 16 billion euros by the end of 2020, by adding more sustainability to our investment products.”

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