Ethical investment goes from strength to strength

When it comes to investing ethically Britons are showing their credentials by putting their pounds where their principles are, according to research by Friends Provident, which launched the UK’s first retail ethical fund in 1984.

Friends Provident has seen the number of new customers investing ethically more than double in the past 10 years – while in February 2007 it announced that its managed ethical funds had passed the £3 billion mark.

The research, based on the company’s 207,000 ethical investment customers, examines trends in socially responsible investment and reveals a glimpse of who is an ‘average’ ethical investor.

The average age of an investor when they first invest ethically is creeping up from 38, ten years ago, to 41 now. Currently 41 to 50 year-olds make up 29% of ethical investors while 31 to 40 year-olds account for a quarter (25%).

In general, there is a trend for an increase in the age of ethical investors, suggesting that older people are in tune with socially responsible investment. In 1996, 18% were over the age of 50, while this figure is currently 23%.

The research has also revealed that ethical investment is not a gender specific issue, with 46% of investors being female and 52% male.

Although nearly a quarter of ethical investors are based in London (23%), people throughout the UK have shown that they are committed to investing their money in ethical funds: 13% of ethical investors are from the Midlands, 10% from the South of England and 8% each from Lancashire, Wales and the West, and Yorkshire.

Julia Dreblow, marketing manager for socially responsible investment at Friends Provident, said: ‘‘Our research provides an insight into this growing market. It shows that there is no such thing as a ‘typical’ ethical investor – men and women, of all ages, throughout the UK, have clearly shown they are interested in how their funds are invested.

‘‘People from all walks of life are finding that socially responsible investment is a real option for anybody who cares about what their money is doing. They are realising that investing in line with your personal values makes sound financial, as well as moral, sense.’’