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July 25, 2003
Survey Finds SRI Fund Managers See Bright Future in Europe
by William Baue
A recent survey of fund managers conducted by UK Social Investment Forum and Thomson Extel reveals
high expectations for significant SRI growth in Europe. Those surveyed also ranked top SRI firms
and analysts.
SocialFunds.com --
Earlier this month, the UK Social Investment
Forum (UKSIF) announced the results of its first survey on socially responsible investment
(SRI) in Europe, conducted by Thomson Extel, a division of Thomson Financial. The survey found that more than 91
percent of the 105 responding SRI fund management firms running SRI-related funds expect their
involvement in the SRI market to increase. The fund managers were predominantly from the United
Kingdom (44 percent), with smaller percentages from continental Europe. A few fund managers from
North America (four percent) and the rest of the world (two percent) that run SRI-related funds
that hold European stocks were included.
The survey also ranked the best brokerage firms
for SRI analysis and reports as HSBC
Securities first and then Dresdner Kleinwort
Wasserstein (DrKW), and reversed the order for SRI news service providers. WestLB Panmure placed third in both of these categories.
"As the clear leaders in
the brokerage community for SRI-related news and analysis, HSBC and Dresdner Kleinwort Wasserstein
are ideally placed to capitalize on the rapidly growing demand from investors for news, views, and
research about material social and environmental issues," said Helen Wildsmith, executive director
of the UKSIF. The UKSIF was founded in 1991 to promote SRI through the integration of material
social, environmental, and ethical issues into standard investment practice.
Independent
financial advisers rated Morley Fund
Management, Henderson Global Investors, and Jupiter
Asset Management as the top three buy-side firms for understanding SRI issues, according to the
survey. The survey also ranked Mark Tyrell of HSBC, Miles Packman of DrKW, and Astrid Emmerich of
Credit Suisse First Boston as the top three
individual analysts for SRI analysis or sales service.
The survey's top-rated sell-sides
analysts for integrated SRI analysis were Ben Yeoh of HSBC's pharmaceuticals analyst, and Alastair
Bishop and Andrew Hollins, DrKW's capital goods and metals and mining analysts, respectively.
"The increasing integration of SRI into sell-side analysis is really exciting, and
indicates how far SRI has advanced in the UK over the last decade," said Tessa Tennant, chair of
both the Carbon Disclosure Project and the
Association for Sustainable & Responsible
Investment in Asia (ASrIA). Ms. Tennant, who chaired the UKSIF from 1993 to 1997, presented
awards to the top-ranking firms and individuals at UKSIF's summer reception earlier this month.
In addition to ranking SRI firms and analysts, the survey gauged firms' plans about SRI
and attitudes toward corporate social responsibility (CSR). The survey asked respondents to rate,
on a scale of one (strongly disagree) to five (strongly agree) the reasons why companies address
social and environmental issues. More than 80 percent of respondents strongly agree (four and
five) that it is "to assist brand value and reputation."
However, almost half (48
percent) of respondents strongly agree that companies' involvement in CSR is "to pay lip service to
public concerns." More than 41 percent of respondents strongly agree that it is "to increase
appeal to investors." Fewer (almost 32 percent) strongly agree that it is "to reduce costs and/or
liabilities."
The majority (almost 52 percent) of 105 fund management firms surveyed
devote only up to two percent of total broker commission to SRI, with a little more than 12 percent
of the firms devoting more than five percent to SRI. However, almost three quarters (71 percent)
of all respondents expect to increase the portion of broker commissions devoted to SRI in the
coming year.
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SRI World Group, Inc. All Rights Reserved.
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