Gender Gap Persists in Impact Investing Study

American Century Investments’^® sixth impact investing survey shows men’s growing interest in impact investing matches and outpaces women’s

February 21, 2023 - Kansas City, Missouri

Despite a growing share of women across five countries reporting impact investing appeals to them, the sixth impact investing survey by the $218 billion* global asset manager American Century Investments shows a gender gap persists. Overall, the appeal of impact investing continued to rise across countries, except for the U.S. Results go back to 2016 in the United States, 2019 in the U.K., 2020 in Germany, 2021 in Australia and 2022 in Singapore.

“The totality of our impact investing surveys shows the appeal has increased over the years across nations for men and women, baby boomers, Gen Xers and millennials,” said Sarah Bratton Hughes, senior vice president and head of sustainable investing for American Century Investments. “Even the populations whose interest lags other populations’ interest are making gains. This isn’t surprising, because the long-term drivers for sustainable investing remain strong, and that reaches all populations.”

Gender gap persists internationally and widens in Australia

The 2022 survey showed women find impact investing more appealing than in prior years. Interest grew five points among U.S. women since 2018, seven points among U.K. women since 2019, 16 points among German women since 2020, and two points among Australian women since 2021.

Yet as it has been each year, men’s interest in impact investing is higher than women’s. This gap is largest in German and Australia (12 points) and exists across all countries, including Singapore, where women’s interest (66%) is higher than U.S. men (60%) and German men (57%) but lags Singaporean men (72%). The gap has been relatively unchanged in the U.S., U.K. and Germany, but in Australia it has jumped from a five-point difference in 2021 to a 12-point difference in 2022.

A question new to the survey this year reveals another gender gap: in all five countries, men were more likely than women to report the recent sustainability “backlash” impacted their appetite for impact investing. Yet backlash’s impact on men was mixed: men in the U.K., Australia and Germany reported a higher appeal in 2022 compared to 2021 while American men’s interest fell by three points. Singapore did not have 2021 results.

Geographic rankings shift with addition of Singapore and declining interest only in U.S.

Overall, the interest in impact investing rose 14 points in Germany, six points in Australia and two points in the U.K. but fell five points in the U.S. since 2021. These changes, plus Singapore’s addition to the survey, shifted comparative rankings. Singapore (69%) took the top spot, displacing the U.K. (65%) to number two, while Australia (63%) displaced the U.S. (56%) from the next spot. Germany remained last (51%) despite seeing the largest increase.

“Despite a challenging global economy, an evolving regulatory environment, and political pushback over the last year, interest in sustainable investing not only endures, but has grown in most places,” said Bratton Hughes. “And even though the appeal in the U.S. fell five points since 2021, it has increased 18 points since 2016.”

Bratton Hughes also pointed out U.S. (24%) and German (24%) respondents were the least likely to report the recent sustainability “backlash” impacted their appetite for impact investing, compared to Australia (26%), the U.K. (31%) and Singapore (53%).

“Despite the political pressure, we believe the American people are neither ‘anti-ESG’ nor anti-environment. They are anti-exclusion,” said Bratton Hughes. “Integrating sustainability and ESG factors into the investment process is not, and should not be, politically motivated – it is focused on value creation, not values. We believe incorporating sustainability into our investment processes can lead to more informed decision-making and better long-term risk-adjusted returns for our clients.”

Health care and disease prevention and cures remains a top cause

For the sixth consecutive survey, health care and disease prevention and cures is the cause that matters the most in the U.S. and Australia, and the second concern in the U.K. and Singapore after the environment.

As an asset manager with an impact on global health, American Century Investments has a unique perspective on sustainable investing. More than 40% of American Century dividends go to the Stowers Institute for Medical Research, a world-class biomedical research organization with an equity stake in American Century. American Century Investments has generated nearly $2 billion in dividends for the Stowers Institute since 2000.

“We have a purpose-driven business model that sets us apart in the industry. Through our relationship with the Stowers Institute, we generate an impact on global health while helping clients achieve financial success. Our connection with the Stowers Institute, as well as their long-term view and commitment to research and innovation has helped to shape our culture and naturally aligns with integrating sustainability into our investment practices,” said Bratton Hughes.

Survey methodology

Impact investing is financial investments designed to have a positive impact on society, while providing potential long-term returns. The 2022 survey was conducted among a representative sample of 1,007 U.S. adults, 1,004 U.K. adults, 1,003 adults in Germany, 1,005 adults in Australia and 1,002 adults in Singapore 18 years of age and older from December 12-14, 2022, in the U.S. and December 9–14, 2022 internationally. The study was fielded using Big Village’s Online CARAVAN Omnibus Survey. The results from the survey were weighted by age, sex, geographic region, race and education to ensure reliable and accurate representation of the adult U.S., U.K., Germany, Singapore and Australia populations. For the purposes of this survey, millennials were defined as those aged 26 to 41; Gen Xers were defined as those aged 42 to 57; and baby boomers were defined as those aged 58 to 76.

Gender Gap Persists in Impact Investing Study

American Century Investments’^® sixth global impact investing survey shows men’s growing interest in impact investing matches and outpaces women’s

London, February 20, 2023

Despite a growing share of women across five countries reporting impact investing appeals to them, the sixth impact investing survey by the $218 billion* global asset manager American Century Investments shows a gender gap persists. Overall, the appeal of impact investing continued to rise across countries, except for the U.S. Results go back to 2016 in the United States, 2019 in the U.K., 2020 in Germany, 2021 in Australia and 2022 in Singapore.

“The totality of our impact investing surveys shows the appeal has increased over the years across nations for men and women, baby boomers, Gen Xers and millennials,” said Sarah Bratton Hughes, senior vice president and head of sustainable investing for American Century Investments.“ Even the populations whose interest lags other populations’ interest are making gains. This isn’t surprising, because the long-term drivers for sustainable investing remain strong, and that reaches all populations.”

Gender gap persists internationally – recent sustainability “backlash” affects appetite for impact investing

The 2022 survey showed women find impact investing more appealing than in prior years. Interest grew five points among U.S. women since 2018, seven points among U.K. women since 2019, 16 points among German women since 2020, and two points among Australian women since 2021.

However, as it has been each year, men’s interest in impact investing is higher than women’s. This gap is largest in Germany and Australia (12 points) and exists across all countries, including Singapore, where women’s interest (66%) is higher than U.S. men (60%) and German men (57%) but lags Singaporean men (72%). The gap has been relatively unchanged in the U.S. (eight points) and U.K (seven points).

A question new to the survey this year reveals another gender gap: in all five countries, men were more likely than women to report the recent sustainability “backlash” impacted their appetite for impact investing. Yet the backlash’s impact on men was mixed: men in the U.K., Australia and Germany reported a higher appeal in 2022 compared to 2021 while American men’s interest fell by three points. In Singapore, the recent sustainability backlash was more likely to affect men (57%) than women (49%) when it came to their appetite for impact investing in 2022.

Geographic rankings shift with addition of Singapore and declining interest only in U.S.

Overall, the interest in impact investing rose seven points in Germany, six points in Australia and two points in the U.K. but fell five points in the U.S. since 2021. Singapore’s addition to the survey shifted comparative rankings in 2022 by taking the top spot (69%). Displaced to number two (65%), U.K. respondents find impact investing much more appealing than their U.S. (56%) and German counterparts (51%), who are much less likely to be familiar with impact investing. Notably, despite the strong interest and high familiarity with impact investing, nearly 60% of U.K. respondents believe greenwashing has increased.

“Despite a challenging global economy, an evolving regulatory environment, and political pushback over the last year, interest in sustainable investing not only endures, but has grown in most places,” said Bratton Hughes. “And even though the appeal in the U.S. fell five points since 2021, it has increased 18 points since 2016.”

Bratton Hughes also pointed out U.S. (24%) and German (24%) respondents were the least likely to report the recent sustainability “backlash” impacted their appetite for impact investing, compared to Australia (26%), the U.K. (31%) and Singapore (53%).

“Despite the backlash, we largely see that people continue to show more interest in impact investing year after year,” said Bratton Hughes. “Integrating sustainability and ESG factors into the investment process is not, and should not be, politically motivated – it is focused on value creation, not values. We believe incorporating sustainability into our investment processes can lead to more informed decision-making and better long-term risk-adjusted returns for our clients.”

Health care and disease prevention and cures remains a top cause

For the sixth impact investing survey, health care and disease prevention and cures is the cause that matters the most in the U.S. and Australia, and the second concern in the U.K. and Singapore after the environment.

As an asset manager with an impact on global health, American Century Investments has a unique perspective on sustainable investing. More than 40% of American Century dividends go to the Stowers Institute for Medical Research, a world-class biomedical research organization with an equity stake in American Century. American Century Investments has generated nearly $2 billion in dividends for the Stowers Institute since 2000.

“We have a purpose-driven business model that sets us apart in the industry. Through our relationship with the Stowers Institute, we generate an impact on global health while helping clients achieve financial success. Our connection with the Stowers Institute, as well as their long-term view and commitment to research and innovation has helped to shape our culture and naturally aligns with integrating sustainability into our investment practices,” said Bratton Hughes.

Survey methodology

Impact investing is financial investments designed to have a positive impact on society, while providing potential long-term returns. The 2022 survey was conducted among a representative sample of 1,007 U.S. adults, 1,004 U.K. adults, 1,003 adults in Germany, 1,005 adults in Australia and 1,002 adults in Singapore 18 years of age and older from December 12-14, 2022, in the U.S. and December 9–14, 2022 internationally. The study was fielded using Big Village’s Online CARAVAN Omnibus Survey. The results from the survey were weighted by age, sex, geographic region, race and education to ensure reliable and accurate representation of the adult U.S., U.K., Germany, Singapore and Australia populations. For the purposes of this survey, millennials were defined as those aged 26 to 41; Gen Xers were defined as those aged 42 to 57; and baby boomers were defined as those aged 58 to 76.

American Century Investment Management (UK) Limited is registered in England and Wales. Registered number: 06520426. Registered office: 12 Henrietta Street, 4th Floor, London, WC2E 8LH.

Impact Investing Divides on Gender Lines: American Century Investments^®

SYDNEY, Australia, February 20, 2023

Australian men are more interested in impact investing than Australian women, with 69 per cent of men finding it appealing in 2022, compared to 57 per cent of women, according to the impact investing study released by the $218 billion* global asset manager American Century Investments.

The sixth impact investing survey surveyed retail investors across the U.S., U.K., Germany, Australia and, for the first time, Singapore. Respondents were weighted according to age, sex, country, race, and education, with the results showing both Australian men and women find impact investing more appealing than they did just a year ago.

According to American Century Investments’ head of sustainable investing, Sarah Bratton Hughes, unfortunately that also means the gender gap in Australia has grown over the past year from five per cent in 2021 to 12 per cent in 2022.

“This result may be a factor of men’s overall familiarity with investments and their propensity to invest. Our survey found over half of Australian men surveyed (51 per cent) already invest in stocks, bonds, or managed funds, compared to just 28 per cent of women, which is quite a disparity.

“We believe closing the gender-related investing education gap will lead to more women finding impact investing to be increasingly appealing as they understand it can lead to more informed decision-making and better long-term risk-adjusted returns,” she said.

The study also revealed younger generations find the concept of impact investing more appealing, with almost three quarters of Australian Gen Zs and millennials (74 per cent) indicating this style of investing is of interest. That compared to 63 per cent of Gen Xers and 48 per cent of Baby Boomers who consider impact investing appealing.

In total, 63 per cent of Australians found the concept of impact investing appealing, which was an increase on the 57 per cent recorded the year prior.

“While our impact investing surveys show the appeal has increased over the years across all age groups, perhaps it should come as no surprise that the younger generations – those who stand to lose most from investments that do not consider a wider impact on society and the environment - find impact investing more appealing,” said Bratton Hughes

Gen Z is also more willing to sacrifice returns in order to create a positive impact (56 per cent), compared to just 17 per cent for Baby Boomers.

Health care, disease prevention and cures top causes for Australian investors

The study also found that healthcare/disease prevention was the cause that mattered most to Australians at 33 per cent, closely followed by environment/climate change at 30 per cent.

When split by gender, Australian men were more likely to choose improved education (13 per cent), mitigating poverty (11 per cent), or racial equity and social justice (seven per cent) as their top cause, while women were more likely to pick healthcare/disease prevention and cures as their top cause at 39 per cent.

Geographic rankings shift with addition of Singapore and declining interest in U.S.

Australia now ranks third in terms of interest in impact investing, after overall interest rose six points over the past year. Singapore, a new addition to the survey, took the top spot in global rankings (69 per cent), displacing the U.K. (65 per cent) to number two, while Australia (63 per cent) displaced the U.S. (56 per cent) from the next spot. German investors were the least interested in the concept of impact investing, with just over half of respondents - 51 per cent – indicating they find it of interest.

“Despite a challenging global economy, an evolving regulatory environment, and political pushback over the last year, interest in sustainable investing not only endures but has grown in most jurisdictions,” said Bratton Hughes.

Survey methodology

Impact investing is financial investments designed to have a positive impact on society, while providing potential long-term returns. The 2022 survey was conducted among a representative sample of 1,007 U.S. adults, 1,004 U.K. adults, 1,003 adults in Germany, 1,005 adults in Australia and 1,002 adults in Singapore 18 years of age and older from December 12-14, 2022, in the U.S. and December 9–14, 2022 internationally. The study was fielded using Big Village’s Online CARAVAN Omnibus Survey. The results from the survey were weighted by age, sex, geographic region, race, and education to ensure reliable and accurate representation of the adult U.S., U.K., Germany, Singapore and Australia populations. For the purposes of this survey, Generation Z was defined as those age 18-25; millennials were defined as those aged 26 to 41; Gen Xers were defined as those aged 42 to 57; and baby boomers were defined as those aged 58 to 76.

American Century Investment Management, Inc. (“ACIM”) (CRD#105778/SEC#:801-8174) is a US registered investment adviser pursuant to the Investment Advisers Act of 1940 of the Securities and Exchange Commission.

ACIM relies on the Australian Securities & Investment Commission (“ASIC”) relief provided for under Class Order [CO 03/1100] for U.S. SEC-regulated financial service providers in relation to the provision of financial services to Australian clients. ACIM has an Australian affiliate entity, American Century Investment Management (AU) Pty Limited (“American Century”), that holds an Australian Financial Service Licence (Number: 518417) issued by ASIC. The information is directed and available to residents of Australia only deemed to be Wholesale Clients under Section 761G of the Corporations Act of 2001.

Impact Investing Now Enjoys Support in Germany – Investors Concerned About “Greenwashing”

FRANKFURT, Germany, February 20, 2023

The interest of German investors in "impact investing" has risen to a new record level. Investments that aim for positive social impact in addition to financial returns are attracting interest from a majority for the first time. In the sixth edition of the "Impact Investing Study" by the $218 billion* global asset manager American Century Investments^® (ACI), 51 percent of respondents in Germany said they found this form of investment appealing or very appealing. In the previous year, it was only 44 percent and another year earlier only 35 percent.

At the same time, the debate about greenwashing is arousing skepticism among many investors. Half of German investors are convinced that greenwashing has increased. Greenwashing is when companies or asset managers present themselves as more sustainable than they actually are. As many as one third of investors in Germany state that greenwashing has an impact on their interest in impact investing.

"Impact investing has made a big step out of its niche in Germany and is now capable of gaining majority support. However, the concern about greenwashing is palpable. Nobody wants to fall for a scam. That is why our industry must now be extremely careful to only promise what can be delivered and to report transparently on impacts achieved," says Volker Buschmann, Managing Director of ACI's Frankfurt-based European unit. "We are convinced that impact investing can lead to more informed decision-making, combining strong financial returns with environmental and social benefits. We therefore continue to be fully behind this approach."

In view of some cases of greenwashing that have come to light, it is more remarkable that German investors’ interest in impact investing has risen recently, as it has in every nation surveyed but the U.S., where interest waned since 2021. Nevertheless, enthusiasm in Germany is still the lowest in an international comparison. The 51 percent who identify themselves as interested in impact investing in Germany are compared to 56 percent in the U.S., 63 percent in Australia, 65 percent in the U.K. and even 69 percent in Singapore.

In addition to the conspicuities in the international comparison, there are also large demographic differences within the countries. Basically, the younger the respondents, the greater their openness to impact investing: 64 percent of millennials in Germany consider the concept attractive, but only 53 percent from Generation X and 39 percent of baby boomers. There are also gender differences: male respondents (57 percent) are more interested in impact investing than female respondents (45 percent).

According to the study, the differences between the genders can be linked to different levels of financial knowledge and previous involvement with the topic. About half (46 percent) of the men surveyed said they were currently invested in securities such as shares, bonds, or funds. Among women, it is only just under one-third (32 percent).

"We observe in all countries of our study that women participate less in the capital market and at the same time are less familiar with the possibilities of impact investing. The study thus confirms once again that the financial inclusion of women worldwide is less pronounced than that of men. This is a situation that we must change if we are to achieve equal participation in the value creation of capital markets," comments Sarah Bratton Hughes, head of sustainable investments at ACI.

Meanwhile, as an investment issue, gender equality plays only a minor role for the respondents in the study. Asked which field of action they consider particularly important in impact investing, only four percent of Germans mention gender equality. Meanwhile, the central concerns are the environment and climate change (29 percent), the fight against poverty (20 percent) as well as health care and the fight against diseases (19 percent).

While the openness for investments with a positive social impact is increasing overall, for most of the respondents, financial investments nevertheless remain a primarily economic matter. Thus, around eight out of 10 investors surveyed in Germany name the risks (81 percent), fees (81 percent), return (77 percent) and investment horizon (78 percent) as important or very important influencing factors. The positive effect on society is important to 61 percent of the survey participants.

"It makes sense in a market economy and is absolutely understandable that economic considerations are at the top of the list when making investment decisions. However, investors are becoming increasingly aware that the social dimension is also highly relevant to value creation. Sustainably operating companies often turn out to be economically convincing investments as well," says Buschmann.

Survey methodology

Impact investing is financial investments designed to have a positive impact on society, while providing potential long-term returns. The 2022 survey was conducted among a representative sample of 1,007 U.S. adults, 1,004 U.K. adults, 1,003 adults in Germany, 1,005 adults in Australia and 1,002 adults in Singapore 18 years of age and older from December 12-14, 2022, in the U.S. and December 9–14, 2022 internationally. The study was fielded using Big Village’s Online CARAVAN Omnibus Survey. The results from the survey were weighted by age, sex, geographic region, race and education to ensure reliable and accurate representation of the adult U.S., U.K., Germany, Singapore and Australia populations. For the purposes of this survey, millennials were defined as those aged 26 to 41; Gen Xers were defined as those aged 42 to 57; and baby boomers were defined as those aged 58 to 76.

American Century Investment Management, Inc. is not authorised by the German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin)).

American Century Investments (EU) GmbH is registered with the German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin)).

Singapore Leads U.S. and U.K. in Impact Investing: American Century Investments^®

Singapore, February 20, 2023

Retail investors in Singapore are more likely to be interested in impact investing than many of its developed peers, including the U.S., U.K., Germany, and Australia, according to new research by the $218 billion* global asset manager American Century Investments.

The 2022 Impact Investing Study has been conducted for the sixth time, and this is the first time the study included respondents from Singapore. Results were weighted by age, sex, geographic region, race, and education and provides insights into the attitude toward impact investing by retail investors.

When asked if they found impact investing appealing, Singapore took the top spot with 69 per cent of those surveyed saying they found impact investing appealing. That compared to the U.K. with 65 per cent, Australia with 63 per cent, the U.S. with 56 per cent and Germany, where just over half indicated they found it appealing (51%).

“The totality of our impact investing surveys shows the appeal has increased over the years across nations,” said American Century Investments Head of Sustainable Investing, Sarah Bratton Hughes.

“This isn’t surprising, because the long-term drivers for sustainable investing remain strong, and that reaches all populations,” she said.

Comparative geographic ratings

The U.S. was the only country where interest in impact investing has gone backwards, falling five points since 2021. In Germany, interest rose 14 points over the year; in Australia, it rose six points; and in the U.K., it was up by two points.

“Despite a challenging global economy, an evolving regulatory environment, and political pushback over the last year, interest in sustainable investing not only endures, but has grown in most places.

“And even though the appeal in the U.S. has declined, it has increased 18 points since 2016,” she said.

Environment/climate change top cause for Singaporeans

The environment/climate change was the cause that mattered most to Singaporeans at 23 per cent, healthcare/disease prevention and cures come in second at 21 per cent, and mitigating poverty was third at 15 per cent.

When split by gender, Singaporean men were more likely to choose climate change as their top cause at 24 per cent, compared to 23 per cent for women. Most women in Singapore picked healthcare/ disease prevention and cures as their top cause at 24 per cent, compared to 19 per cent for men.

Gender gap narrowest in Singapore

The gender gap between the percentage of men versus women who expressed interest in impact investing was also narrowest in Singapore where 72 per cent of men said they found it appealing, compared to 66 per cent of women, representing a gender gap of six per cent.

Women’s interest in Singapore (66 per cent) was also higher than U.S. men (60 per cent) and German men (57 per cent).

Broken down by age group, Singaporean millennials expressed the highest interest in impact investing at 75 per cent, followed by Gen Zs at 72 per cent, baby boomers at 65 per cent, and Gen Xers at 61 per cent.

“We’re pleased with the high level of awareness and interest in impact investing in Singapore across ages and genders with their inaugural inclusion in this survey,” said Bratton Hughes. “I expect this trend will only continue, as we believe that incorporating sustainability into our investment processes can lead to more informed decision-making and better long-term risk-adjusted returns.”

Survey methodology

Impact investing is financial investments designed to have a positive impact on society while providing potential long-term returns. The 2022 survey was conducted among a representative sample of 1,007 U.S. adults, 1,004 U.K. adults, 1,003 adults in Germany, 1,005 adults in Australia and 1,002 adults in Singapore 18 years of age and older from December 12-14, 2022, in the U.S. and December 9–14, 2022 internationally. The study was fielded using Big Village’s Online CARAVAN Omnibus Survey. The results from the survey were weighted by age, sex, geographic region, race and education to ensure reliable and accurate representation of the adult U.S., U.K., Germany, Singapore and Australia populations. For the purposes of this survey, Generation Z was defined as those aged 18-25; millennials were defined as those aged 26 to 41; Gen Xers were defined as those aged 42 to 57; and baby boomers were defined as those aged 58 to 64.

American Century Investment Management (Asia Pacific), Limited currently holds Type 1 and Type 4 registrations from the Securities and Futures Commission (“SFC”). American Century Investment Management, Inc. is not registered with the SFC. Neither ACIM (Asia Pacific) or ACIM are registered with the Monetary Authority of Singapore.