Avanzi/ SiRi Company publish update on trends in European green, social and ethical funds

Avanzi SRI Research and SiRi Company have just published the up-to-date version of the well-know survey Green Social and Ethical Funds in Europe (2004). As for past versions, the Avanzi SRI Research/SiRi Company survey takes a census of European funds (at 30th June 2004) using ethical, social or environmental screens for portfolio selection.

During the last 12 months, the number of socially responsible investment products has continued to grow and SR funds assets realised a marked increase, also benefiting from positive returns of financial markets.

Among the main findings, the report highlights the increase of available retail SRI funds (+13%). On 30 June 2004 there were 354 green, social and ethical funds operating in Europe (they were 313 at the end of June 2003), with United Kingdom, Sweden, France and Belgium making up 64% of the total. Total assets under management realised a marked growth, achieving a total of €19.0 billion, benefiting from positive trends of financial markets. The much more intense growth of SRI assets relative to “traditional” funds went in any case beyond that, being influenced by the launch of new SR products by key asset managers or the re-design of existing products to include social responsibility elements.

As regards funds typology, the growth of the fixed equity share on total SR retail assets (passed from 17.1 to 21.4%) was even more remarkable when considering that this class was outperformed by that of equity funds over the last year.

United Kingdom continues to make up the majority of European SRI retail assets with nearly 36% of the total. At the same time, while SRI funds still make up a very limited portion of all funds in Europe, the ratio between SRI funds and UCITS assets increased (0.47% from 0.36% at June 2003) benefiting from the relative higher proportion of equity and balanced funds in the SRI industry compared to the total equity and balanced funds at large. Countries breakdown show that Belgium leads this special ranking with 1.75%, while Netherlands, United Kingdom and Switzerland follow, all with a ratio higher than 1.45%.

For the first time Avanzi SRI Research/SiRi Company report include aggregate data about SR funds fees and performances, revealing as SR fund managers achieved higher results than their “traditional” peers over the last year particularly when investing in global fixed income securities.

AstraZeneca, Vodafone, Pfizer, Ericsson, Hennes & Mauritz are the most frequent stocks in SRI portfolios.

Green Social and Ethical Funds in Europe (2004) report is downloadable for free at
http://www.siricompany.com/pdf/SRI-Funds-Report2004.pdf

The report is part of the SRI Funds Service, the most comprehensive data base on European SRI funds, that enables asset managers to build SRI funds portfolios, to benchmark against peer groups, to review SRI policy and criteria. SRI Funds Service, whose Basic for free version can be accessed through www.avanzi-sri.org, combines the unique information on socially responsibility criteria, policies, transparency and engagement collected for years by Avanzi SRI Research and SiRi Company, with daily and accurate funds financial figures provided by Morningstar. SRI Funds Service is also used by listed companies to better understand the reasons for being included / excluded by SRI portfolio managers. SRI Funds Service is a Eurosif recommended solution.

The SRI Funds Service and the report are the result of collective research carried out by organisations belonging to the Sustainable Investment Research International (SiRi) Company, the widest network of local independent research bodies analysing listed companies approach to social responsibility / sustainability.

SiRi Company is owned by the members of the former SiRi Group. These are Avanzi SRI Research (Italy), Centre Info (Switzerland), Dutch Sustainability Research (Netherlands), ECODES (Spain), GES Investment Services (Sweden), KLD Research & Analytics (USA), Jantzi Research (Canada), Pensions & Investment Research Consultants (United Kingdom), scoris (Germany), Stock at Stake (Belgium) and Sustainable Investment Research Institute (Australia).

For more information:
Avanzi SRI Research
Phone: +39 02 36518112
e-mail: familiari@avanzi-sri.org
www.avanzi-sri.org
www.siricompany.com