Not all clients want responsible investments, but asking can be a way to deepen relationships
Many financial advisors are missing opportunities to strengthen client relationships by not discussing responsible investing, despite strong client interest in such conversations. While 73% of investors believe advisors should ask about responsible investing, only 28% report being asked, revealing a persistent service gap. Although awareness and understanding of responsible investing remain low, existing owners of responsible investments are highly likely to maintain or increase their allocations.
- ▪73 percent of investors said advisors should be required to ask about responsible investing during the know-your-client process.
- ▪Only 28 percent of investors reported that their advisor or institution had actually asked them about responsible investing.
- ▪94 percent of investors who own responsible investment assets plan to maintain or increase their allocations.
- ▪Awareness of responsible investing declined, with 71 percent of investors reporting they had never heard of it or knew little about it.
- ▪Two-thirds of survey participants cited greenwashing and lack of clarity about fund labels as barriers to investing in responsible investment funds.
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Open this photo in gallery:The survey found almost all clients who own responsible investments plan to maintain or increase their allocations, potentially making it easier for advisors to retain these clients.MTStock Studio/iStockPhoto / Getty ImagesShareSave for laterPlease log in to bookmark this story.Log InCreate Free AccountAt a time when advisors are feeling pressure from artificial intelligence and do-it-yourself investment platforms, many are missing an easy opportunity to deepen relationships with clients.For the 10th time, the Responsible Investment Association (RIA) asked Canadian investors for their opinions about responsible investing (RI).
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