Investor Interest in Responsible Investing Soars
Executive Summary
- The political and economic landscape appears to be sparking investment action among investors.
- Investor awareness, interest and preference for responsible investing (RI) soars, yet myths persist.
- All eggs in one basket? 52% of investors say they would be likely to put ALL of their investment holdings in a responsible investing portfolio. 92% of Millennials feel the same way.
- Though there has been an increase in advisors raising RI with clients, advisors are less likely to recommend RI products compared to last year. 22% of advisors who have heard of RI say they are currently recommending RI to clients, compared to 29% in 2015.
- Advisors who continue to recommend RI are recommending more assets and using RI as a competitive differentiator, perhaps because they have seen success in their practice, portfolio performance and client loyalty.
- The reasons for advisor hesitation range from difficulty in portfolio construction to a lack of access. One in 10 (11%) of advisors say they “completely understand” the due diligence process to incorporate responsible investing in portfolios.
- More than eight in 10 (82%) of investors would be more likely to work with an advisor who could give them competitive investment returns from investments that also make a positive impact on society.
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