Retirement plans offering SRI, could double in the next few years

Socially Responsible Investing (SRI) funds look set to double in the next two to three years, according to a new report released by Mercer and the US SIF Foundation (formerly the Social Investment Forum Foundation).

The number of defined contribution (DC) retirement plans in the U.S offering a SRI choice will either hold steady or grow in the next five years and according to the report titled “Opportunities for Sustainable and Responsible Investing in U.S. Defined Contribution Plans.” The report finds that a sizeable number of the DR plan sponsors report to the survey, 14% of sponsors currently offer one or more SRI options, and 13% are either planning to offer them or are thinking about offering them within the next two to three years.”

The report finds that more than four out of five plan sponsor respondents (both those that currently offer SRI options and those that do not) predict that demand for SRI options in retirement plans will increase or remain steady for the next five years.

According to Lisa Woll, chief executive officer of U.S. SIF, “Today, more and more Americans rely on defined contribution (DC) pension plans for their retirement, and it is clear that SRI options are going to be a bigger part of that picture. Investment flows to DC plans tend to be steady during market downturns, making DC plans an important retirement tool for many workers. The retirement industry regularly analyses the overall investment composition of DC plan assets; however, plan sponsors and participants have had little concrete information about the availability of sustainable and responsible investing options. This year, the US SIF Foundation determined a new survey was needed to fill in that information gap, particularly given the significant growth in SRI, tumult in the financial markets and changes in the DC retirement industry over the last five years.”

The report also finds that for those plan sponsors that currently offer SRI options, the primary reasons for doing so are to align their pans with their organizational missions and to meet employee demand.

Craig Metrick, Mercer Principal and U.S. Head of Responsible Investment said, “”Given the large number of plan sponsor respondents who admit to little or no knowledge of SRI products and indices, education is clearly a critical and a significant opportunity. Thus, better awareness of the variety of SRI funds available and the performance and risk characteristics of those funds could help in expanding the SRI market share in DC plans. In addition, since plan sponsors indicate that demand from participants is the leading driver in their decisions as to whether to add SRI options to their plans, ascertaining whether participants are interested in SRI options is also important.”


About Insight group PLC

About Us Insight Group PLC is a leading private investment company based in the thriving city of Cape Town, South Africa. With offices also located in Mozambique, Gambia and the financial hub of Hong Kong; Insight Group PLC is perfectly positioned to provide clients with investment opportunities and expertise unsurpassed in today's marketplace. We take great pride in our ability to provide our clients with quantifiable confidence in everything we do. Our ability to achieve this and meet the varying needs of all of our clients stems from the fifty years of experience in the financial, media, commodities and property sectors of those leading the organisation's success. Chairman of Insight Group PLC, Alfonso Rivera Revilla, is a respected Accountant and Lawyer in Europe with over 25 years of experience in working with high-end investors who want to get the most out of their personal finances and their businesses: "In these difficult economic times, it is critical to protect your wealth. Traditional strategies, such as high interest rate accounts, no longer give people a worthwhile return. At Insight Group PLC, we're excited about the fact we offer investment opportunities that other's can't - including the big banks and funds. We personally seek the most competitive investment options for our clients and put them in touch with our industry experienced and respected Wealth Management Specialists (click here if you'd like to work for us). "We are confident in everything we do, contact us to share in that confidence and to reap the rewards." View all posts by Insight group PLC

2 responses to “Retirement plans offering SRI, could double in the next few years

  • backlinking

    I’m not that much of a online reader to be honest but your blogs really nice, keep it up! I’ll go ahead and bookmark your website to come back later on. Many thanks

  • Lashon Melle

    Great post, I conceive website owners should larn a lot from this weblog its real user pleasant. “You don’t have to deserve your mother’s love. You have to deserve your father’s.” by Robert Frost.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: