The demand for so-called “good investments” is increasing again. The trick is to know which ones are the “do-gooders.” It’s not so easy to tell which investments are the green ones.
“We receive frequent inquiries on sustainability funds. This is not surprising. The interest in such systems is increasing, but the product landscape is very complex,” says Christopher Traulsen, an expert at investment research provider Morningstar. The growing interest on the investment side is reflected in the latest market report (for the plant in 2009) of the Sustainable Investment Forum. The financial crisis of 2008 sent the sustainable investment market into a 32 percent decline. This same market has now seen a new high of 38 billion euro in German speaking countries like Austria, Germany, and Switzerland.
Switzerland is the largest market, with a volume of 23 billion euro. This may sound surprising, yet a look at the customer layer brings some clarity. Next is Germany that reaches a volume of nearly 13 billion Euro. Austria has the least increase at 2 billion euro. Switzerland saw a growth rate at an incredible 16 percent between the years 2008 and 2009. Thus, the volume of “good investments” also reached a new high A much closer assessment can be made in Austria, which measure the total volume of public and special funds according to data from the Association of Austrian Investment Companies in 2009 7 billion 1 percent of this has been “green investments.”
Even though 2010 did not amount to a decent return of “good” or “green investment” that are considered sustainable, these investments and the industries that harbor them require patience on the part of the active investor.
To a positive 2011 for sustainable investments in Europe and around the world!
Author bio: Besides being the director of Investment Insider’s German office, Derrik Brunner is the Editor in Chief InvestmentInsider.eu. His ability to ascertain important information from critical sources across Europe in relation to markets and investments is well respected.
Derrik Brunner can reached via email at derrikbrunner@investmentinsider.eu