Journal article
On the heterogeneity of sustainable and responsible investors
Publication Details
Authors: | Zwergel, B.; Wins, A.; Klein, C. |
Publication year: | 2019 |
Journal: | Journal of Sustainable Finance & Investment |
Pages range : | 282-294 |
Volume number: | 9 |
Issue number: | 4 |
ISSN: | 2043-0795 |
Abstract
We demonstrate that German retail investors have very heterogeneous requirements pertaining to 'sustainable investments' as a group, based on a representative survey ( = 1014). According to investment behavior we identify three investor groups: 'Sustainable and Responsible' (SR) investors, and conventional investors that are either 'generally interested' (INT) or 'not interested' (CONV) in investing in ethical-ecological investments. The most frequently selected screening criteria are identical for SR, INT and CONV investors. However, measures of intra-group and inter-group heterogeneity indicate that these three groups are heterogeneous with very individual demands regarding sustainable investments. Therefore, it is more important to aid the investor in his search for a fund that meets his screening preferences than to create a fund that tries to anticipate investor groups' screening preferences.
We demonstrate that German retail investors have very heterogeneous requirements pertaining to 'sustainable investments' as a group, based on a representative survey ( = 1014). According to investment behavior we identify three investor groups: 'Sustainable and Responsible' (SR) investors, and conventional investors that are either 'generally interested' (INT) or 'not interested' (CONV) in investing in ethical-ecological investments. The most frequently selected screening criteria are identical for SR, INT and CONV investors. However, measures of intra-group and inter-group heterogeneity indicate that these three groups are heterogeneous with very individual demands regarding sustainable investments. Therefore, it is more important to aid the investor in his search for a fund that meets his screening preferences than to create a fund that tries to anticipate investor groups' screening preferences.
Keywords
Best-in-class, investor heterogeneity, positive and negative screening criteria, retail investors, SRI, survey
