Product Type: Market Research Report
Published by: Datamonitor
Published: October 2006
Product Code: R313-16973Description Introduction
Over the past five years, the wealth management industry in several major markets has seen significant growth of what is often known as 'ethical wealth management'. In the UK, as well as in some markets in western Europe, wealth managers are noting increasing levels of client interest in investment or banking propositions that are socially responsible or that offer sustainable investing.
Scope- Sizes ethical wealth management markets in nine of the largest European markets;
- Provides examples of successful ethical wealth management businesses from Europe and the United States.
Highlights
The European SRI market remains largely the domain of institutional investors, according to Eurosif's research. The dominance of large, long term, independent institutional investors in the major markets for SRI in Europe, particularly the UK and the Netherlands, means this segment has a great deal of influence over the development of SRI products;
The increasing sophistication of many high net worth individuals, as shown by Datamonitor's annual Wealth Management Market Leaders survey of leading European wealth managers, also contributes to increased awareness of the implications of investment among clients;
Many wealth managers feel that unless the various forms of ethical wealth management perform as well as standard services, there is little incentive to create SRI offerings. Although a significant proportion of wealth managers feel that clients are receptive to ethical services, some feel a degree of conflict between doing good and doing well.
Reasons to Purchase- Size the ethical wealth management market in Europe;
- Learn how competitors have developed their SRI offerings and which offerings are most effective.
Table of Contents - CHAPTER 1 INTRODUCTION
- Overview
- CHAPTER 2 SIZE OF THE SRI MARKET IN EUROPE
- Introduction
- The European ethical wealth management market is now worth EUR1.033tn
- The growth of SRI AuM in Europe is greater than that of the general market
- The European SRI market is led by the UK
- The Dutch market is the largest Core SRI market in Europe
- Broad SRI in Europe is dominated by integration and engagement strategies
- The UK leads the way in integration and engagement in Europe
- Institutional investors account for 94% of the total European SRI investment market
- Data tables
- CHAPTER 3 MARKET ISSUES
- Introduction
- The current popularity of ethical wealth management services is due to several factors
- In the UK, there are moves to encourage greater take-up of ethical products
- The ""Doing good versus doing well"" conflict is a constant theme within ethical wealth management
- Do ethical fund returns measure up?
- Is ""best in sector"" really just a form of ""best of a bad lot""?
- What is defined as ethical varies from individual to individual
- CHAPTER 4 THE COMPETITIVE LANDSCAPE
- Introduction
- At present there are many forms of ethical wealth management proposition
- Rathbones' Rathbone Greenbank Investments was a pioneer of ethical wealth management services in the UK
- The Co-Operative Bank and its online arm smile.co.uk has a holistic ethical policy
- The Netherlands' Triodos Bank offers European clients a broad spectrum of innovative ethical options
- ABN Amro Asset Management is an international brand with a market leading SRI offering
- BNP Paribas is responding to investor demand for SRI investment opportunities in emerging markets
- APPENDIX
- WHAT IS ETHICAL WEALTH MANAGEMENT?
- An ethical wealth management service enables clients to use their money in accordance with their personal views
- Socially Responsible Investing (SRI) focuses on social issues involved in investment
- Sustainable investing (SI) has a greater focus on environmental issues relating to investment
- Positive and negative screening strategies help wealth managers identify suitable investment opportunities
- Inclusion criteria for the FTSE4Good Index meets ""globally accepted and continually evolving standards""
- Shareholder advocacy and activism means ""regular"" companies can be transformed into SRI-compliant organizations
- Ethical wealth management is more than an investment issue
- Eurosif's categorization of SRI strategies for Chapter 2
- Core SRI
- Broad SRI
- Further Reading
- Global Wealth Management SPP
- Interactive Databases
- Market Reports
- Strategic Insight Reports
- Wealth Management Competitor Tracker
- Datamonitor Asia Pacific Wealth Management SPP
- SPP writing team
- List of Tables
- Table 1: SRI strategies as applied in Europe, Dec 31, 2005
- Table 2: Total SRI market value by country, split between core and broad strategies, as of December 31, 2005
- Table 3: Core SRI by European Country, Dec 31, 2005
- Table 4: Engagement and integration strategy market size, by country, as of December 31, 2005
- Table 5: Institutional vs Retail SRI investments in Europe, December 31, 2005
- List of Figures
- Figure 1: Across Europe, engagement and integration strategies, so-called ""broad SRI"", are by far the most widely used
- Figure 2: The UK has by far the largest SRI market in terms of total AuM in Europe
- Figure 3: Core SRI market size in EURbn in selected European markets, as of December 31, 2005
- Figure 4: The UK leads Europe in terms of integration and engagement as SRI strategies
- Figure 5: The retail SRI market in Europe is dwarfed by the value of institutional investment
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