Socially Responsible Investing for European Private Clients

Overview

Introduction

This brief analyses the socially responsible investment (SRI) trend and the implications for European private banks and wealth managers. It assesses key drivers, the major advantages and disadvantages in developing an ethical offering, competitive activity in this area and the strategic options for wealth managers, including the future opportunities and barriers to further development.

Scope

• Squarely focused on the implications of the socially responsible investment trend from a wealth manager's perspective.
• Includes competitive examples and case studies of key initiatives by wealth managers' in this area.
• Sizes the socially responsible investment fund market.
• Future focused and European in coverage.

Report Highlights

While the number of SRI funds has continued to grow, assets under management in these vehicles have fallen by 16 per cent between December 2001 and June 2003 from EUR14.5bn to EUR12.1bn. This reflects the equity nature of SRI products, which have been subject to the same prevailing stockmarket conditions as the wider fund industry.

Future growth will be primarily supply driven as new entrants to the market consolidate their product and service range and innovators enhance and develop their offerings to the further benefit of investors. There is also the expectation of a follow on effect as major investors and investment management houses move into the SRI sector

With so few current SRI offerings designed specifically for HNWs there is the potential to achieve competitive differentiation. The cost of incorporating an SRI service is far from prohibitive and being an early mover will leave wealth managers well positioned to exploit a market with substantial mainstream potential in the longer-term.

Reasons to Purchase

• Full analysis of the advantages, difficulties and practicalities of developing an SRI offering allows wealth managers to better assess the key issues.
• Detail of competitor initiatives and case studies provides insight and ideas into current and potential future offerings
• Offers a future focused view of the strategic options for players in developing their response to the socially responsible investment trend.