('’)
Share

Jan. 28, 2009 - Nearly eight in ten U.S. investors (78%) say environmental technology has the potential to be the "next great American industry," according to a new survey by Allianz Global Investors.

Better than nine in ten survey respondents (91%) believe that finding solutions to environmental problems will be a major issue for years to come, and nearly seven in 10 (69%) say it is important to look at investments in companies that are capitalizing on addressing environmental problems.

"The need for pollution control, clean water and energy efficiency is not going away. Investors perceive there is real opportunity here and they want to capitalize on it," says Brian Gaffney, CEO of Allianz Global Investors Distributors.

Investors continue to view the environmental technology sector as a "buy," with 64% classifying the environment as their most desirable investment opportunity. In addition, the survey notes a 30% increase from 2007 to 2008 in the number of investors who say they have already made investments in companies that are capitalizing on environmental trends.

"Investors' bright outlook on the environmental technology sector is telling. This is perceived as a long-term opportunity," says Gaffney. "Investors understand that robust demand for innovation and solutions will fuel growth, and consequently profits, for years to come."

Yet the survey also suggests that investors, while hungry for green opportunities, are still unsure where to find them. Among those already investing with an investment professional, 78% say that even though the market has been performing poorly, they are still looking to their financial adviser to bring them interesting investment opportunities. Of those, 85% say their adviser had yet to recommend an environment-related investing opportunity. (The newness of this investment category could be the reason why advisers are not recommending green opportunities, Allianz suggests.)

"This is a rapid-growing and rapid-changing sector of the market, so investors are looking for help to smartly and profitably participate," says Gaffney. "Innovation in environmental technology is occurring at an increasing pace and on a global scale, so evaluating the opportunities may be difficult for individual investors. Financial advisers can help investors navigate the space and in turn, professionally managed products offer advisers access to experience, technical expertise and diversification in this complex sector."

Overall, respondents seem optimistic about the future of green investing - and many contribute it to the Obama Administration. Eight in ten respondents say Americans are likely to see more policies to promote business investment in new environmental technologies in the first year of the Obama Administration than under eight years of the Bush Administration. Further, nearly three-quarters (74%) believe the new Congress will be more supportive of policies to promote business investment in new environmental technologies than the old Congress.

To read the entire survey, click here.