Schroders Global Investor Study 2020: Hong Kong investors recognise sustainable funds offer best of both worlds

30/09/2020
webimage-145DA018-DE28-4D11-B49079419FDE87F7

Over one-third (40%) of Hong Kong investors regard sustainable funds as attractive investments because of their likelihood to offer higher returns, Schroders Global Investor Study 2020* has found. This study of more than 23,000 people globally, including 500 of them from Hong Kong, also found that 39% of investors favoured sustainable funds because of the wider environmental impact, and 29% said it was due to personal societal principles.

20200930_hk_eng_pr_1

Hong Kong investors believe that themselves as an individual can contribute to a more sustainable society through their investments, with more than a third (38%) of them choosing to invest sustainable funds rather than those that do not consider sustainability factors.

Amy Cho, Chief Executive Officer, Hong Kong and Head of Intermediary, Asia Pacific, Schroders, commented:

“It is exceptionally positive to see that many investors today believe that investing sustainably does not have to come at the expense of performance, and that people want their values reflected in the way they invest.

“Our focus as an asset manager is to help our clients better navigate the sustainable investment space. Our aim is to deliver not only returns for investors, but better outcomes for society as a whole.”

Access to information is key in helping investors understand the sustainable impact of their investments. Almost nine-tenth (89%) of Hong Kong investors wanted more information to reassure them that their investments are sustainable, whether this is from solution providers’ self-certification (36%), third-party endorsement of sustainable investments (31%), or regular updates from the investment providers (22%). In fact, 59% of Hong Kong investors said they frequently or occasionally ask their financial advisor for information around sustainable investing.

“Sustainable investing often means different things to different people, their personal beliefs are often a key part of this. For some, this may entail putting a greater investment emphasis on companies that place environmental issues at the top of their corporate agendas for others they may seek divestment from fossil fuel producers. Communication is therefore key; investors need to understand what investing sustainably really means and entails. This is a core focus for Schroders; working closely with our clients and business partners to ensure we are meeting their sustainable investment needs and objectives,” commented Amy Cho.

With climate change being one of the significant challenges in sustainable development, Hong Kong investors ranked individuals such as themselves third in line (55%) as being responsible for mitigating climate change, behind national governments & regulators (66%) and inter-government organisations like the United Nations (62%).

When specifically asked what they think investment managers should do with regards to companies involved in the fossil fuel industry, 54% of Hong Kong investors think investment managers should leverage the influence they have by withdrawing funds from these companies.

Climate change can be costly and disruptive to people’s lives. It is already having a major impact on how people invest. That is also why Schroders, starting from this year, has incorporated the impact of climate change into its 30-year forecasts for different asset classes and markets. 

In addition to expressing their beliefs in sustainability through investment, investors are also acting in their daily lives. Reducing or recycling household waste (52%) was found to be the most common way among those who wish to contribute to a more sustainable society. They would also buy locally produced goods that have lower carbon footprints (44%) and avoid businesses with poor social responsibility track records (42%).

To find out more about Schroders Global Investor Study 2020, please click here.

*In April 2020, Schroders commissioned an independent online survey of over 23,000 people who invest from 32 locations around the globe. This spanned countries across Europe, Asia, the Americas and more. This research defines people as those who will be investing at least €10,000 (or the equivalent) in the next 12 months and who have made changes to their investments within the last 10 years.

Important Information

The contents of this document may not be reproduced or distributed in any manner without prior permission.

This document is intended to be for information purposes only and it is not intended as promotional material in any respect nor is it to be construed as any solicitation and offering to buy or sell any investment products. The views and opinions contained herein are those of the author(s), and do not necessarily represent views expressed or reflected in other Schroders communications, strategies or funds. The material is not intended to provide, and should not be relied on for investment advice or recommendation. Any security(ies) mentioned above is for illustrative purpose only, not a recommendation to invest or divest. Opinions stated are valid as of the date of this document and are subject to change without notice. Information herein and information from third party are believed to be reliable, but Schroder Investment Management (Hong Kong) Limited does not warrant its completeness or accuracy.

Investment involves risks. Past performance and any forecasts are not necessarily a guide to future or likely performance. You should remember that the value of investments can go down as well as up and is not guaranteed. You may not get back the full amount invested. Derivatives carry a high degree of risk. Exchange rate changes may cause the value of the overseas investments to rise or fall. If investment returns are not denominated in HKD/USD, US/HK dollar-based investors are exposed to exchange rate fluctuations. Please refer to the relevant offering document including the risk factors for further details.

This material has not been reviewed by the SFC. Issued by Schroder Investment Management (Hong Kong) Limited.

Follow us
Follow us
Follow us

Contact Us

Level 33, Two Pacific Place, 88 Queensway, Hong Kong

(852) 2521 1633

Online enquiry: Please complete the web form below and we will reply as soon as possible.

Contact us

The investments mentioned in this website may not be suitable to all investors. The information contained in this website is provided for reference only and does not constitute any investment advice. Investors are advised to seek independent advice before making any investment decision.

Investment involves risk. Past performance is not indicative of future performance. You should remember that the value of investments can go down as well as up and is not guaranteed. You may not get back the full amount invested. Please refer to the relevant offering document including the risk factors.

This website is intended for Hong Kong residents only. Non-Hong Kong residents are responsible for observing all applicable laws and regulations of their relevant jurisdictions before proceeding to access the information contained herein. Schroder Investment Management (Hong Kong) Limited is regulated by the SFC. The website (excluding Schroder Provident Plan related pages) has not been reviewed by the SFC.

The website is issued by Schroder Investment Management (Hong Kong) Limited.

Important notice: Schroders does not make unsolicited requests through emails, calls, messages, WhatsApp, WeChat, Facebook, Instagram applications. Any contact other than via Schroders’ official channels for personal or financial information is likely to be false and fraudulent. Please stay vigilant and refer to our Fraud Alert Notice for further details. If you have doubts about the person, platforms, websites or institutions that claim to be associated with Schroders, please contact us via (852) 2521 1633 and inform the local police.