European SRI moving from niche to mainstream

Socially Responsible Investment (SRI) funds are moving from niche to mainstream as demand for the investment vehicles has increased dramatically across Europe, according to a new report from Lipper Feri.

The Hot Topics report highlights that while SRI finds account for less than 1pc of the

European retail investment market, the assets of these funds have more than tripled since 2002, reaching €40.4bn in May 2008.

With 2007 net sales of €9.3bn accounting for 10pc of total European sales, SRI funds are rapidly moving from niche to mainstream, Lipper Feri reports.

This development is reflected, it said, in the number of fund launches. Between 2002 and 2006 fewer than 20 new SRI funds a year were launched but since the end of 2006, there have been 105 new fund launches bringing the total number of SRI funds in Europe to 498.

The recent fashionable themes, such as energy and water, have fuelled investor interest in SRI funds.

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