Investors in the United States view the environment as a major long-term investing opportunity, according to the results of a groundbreaking survey of investors released by Allianz Global Investors.
Of the 1,003 investors surveyed, nearly half (49 percent) said that over the next 12 months they were likely to invest in a company or mutual fund looking to provide solutions for environmental problems; 17 percent reported having already made such an investment.
"The environment is a fertile investment area at an early stage of growth," said Bozena Jankowska, lead portfolio manager of the Allianz RCM Global EcoTrends Fund, a continuously offered closed-end interval fund, and head of the RCM Sustainability Research Team. "It is one of the few sectors where the public and politicians are in alignment and inclined to act. As popular sentiment grows and legislation continues to tighten, technological innovation will accelerate, laying the groundwork for great investment opportunities."
The poll of 1,003 adults examined investors’ understanding of and attitudes toward the environment, absolutely and with specific regard to investing. The poll was conducted via the Internet between December 14 and December 20, 2007 by GfK Roper Public Affairs & Media, a division of GfK Custom Research North America. Participants had to be age 25 or older and have primary or shared responsibility for investment decisions in households with financial assets of at least 100,000 US dollars. The sample was weighted to match the characteristics of the total online population in terms of gender, age, and region, according to the U.S. Census.
"Green" technologies increasingly important to US investors
According to a new survey by Allianz Global Investors, individual US investors see major a opportunity to put some green in their portfolios.
Green is the new black
Investors see the environment as a large and enduring investment opportunity. Better than seven in 10 investors (71 percent) deemed environmental technology a "buy", the most desirable sector of the six surveyed. More than half (54 percent) said that environmental investing will be an "important focus" for them in the future.
"Protecting the environment is a social and political imperative, and, increasingly, an investing priority as well," Jankowska said. "Our research shows that investors understand that significant environmental issues represent potential lucrative opportunities for businesses endeavoring to bring real solutions to a global market."
Investors expressed strong familiarity with environmental issues. Seventy-three percent said they knew at least a fair amount about the Greenhouse Effect and 73 percent said they knew at least a fair amount about the Energy Star energy efficiency rating. That compares with 77 percent who said they knew at least a fair amount about mutual funds.
Seventy-one percent of respondents said environmental investments offered the potential for long-term capital growth. In terms of specific investment opportunities, 62 percent of investors said they consider solar energy a major investment opportunity. It was followed by wind power (57 percent), hybrid vehicles (53 percent), and water purification (50 percent). Ethanol (cited as a major opportunity by 37 percent of investors) and Eco-tourism (17 percent) were the least highly rated sectors.
"Protecting the environment is a social and political imperative, and, increasingly, an investing priority as well," Jankowska said. "Our research shows that investors understand that significant environmental issues represent potential lucrative opportunities for businesses endeavoring to bring real solutions to a global market."
Investors expressed strong familiarity with environmental issues. Seventy-three percent said they knew at least a fair amount about the Greenhouse Effect and 73 percent said they knew at least a fair amount about the Energy Star energy efficiency rating. That compares with 77 percent who said they knew at least a fair amount about mutual funds.
Seventy-one percent of respondents said environmental investments offered the potential for long-term capital growth. In terms of specific investment opportunities, 62 percent of investors said they consider solar energy a major investment opportunity. It was followed by wind power (57 percent), hybrid vehicles (53 percent), and water purification (50 percent). Ethanol (cited as a major opportunity by 37 percent of investors) and Eco-tourism (17 percent) were the least highly rated sectors.
Looking for help
The survey found that investors are keenly interested in learning more about environment-related investing opportunities, and are looking to financial advisors for help.
Seventy-three percent of investors said they would need to consult a financial advisor for help investing in the environment. Interestingly, among investors with a financial advisor, 83 percent said their advisor had yet to recommend an environment-related investing opportunity.
"Investors understand that the fact that they recycle or drive a hybrid vehicle does not make them an expert in environmental investing," said Blake Moore, Managing Director and CEO of Allianz Global Investors US Retail. "Success in this sector requires an understanding of the problem, the market, the competition and, in many cases, the ability to understand and evaluate a new technology. Investors are looking to their advisors for help and many advisors are, in turn, looking for the experience, technical expertise and diversification offered by professionally managed products."
As with all content published on this site, these statements are subject to our Forward Looking Statement disclaimer, provided on the right.
Seventy-three percent of investors said they would need to consult a financial advisor for help investing in the environment. Interestingly, among investors with a financial advisor, 83 percent said their advisor had yet to recommend an environment-related investing opportunity.
"Investors understand that the fact that they recycle or drive a hybrid vehicle does not make them an expert in environmental investing," said Blake Moore, Managing Director and CEO of Allianz Global Investors US Retail. "Success in this sector requires an understanding of the problem, the market, the competition and, in many cases, the ability to understand and evaluate a new technology. Investors are looking to their advisors for help and many advisors are, in turn, looking for the experience, technical expertise and diversification offered by professionally managed products."
As with all content published on this site, these statements are subject to our Forward Looking Statement disclaimer, provided on the right.
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