Many Canadian investors find themselves drawn to the perceived merits of responsible investment, but they know little about it.
So finds the Responsible Investment Association’s (RIA) 2017 investor survey, which polled 1,084 investors via an online survey between March 21 and 30. RIA says 77% of respondents are interested in Responsible Investing (RI) and, in particular, 71% reported interest in impact investments dedicated to solving social or environmental problems.
The issue, adds RIA, is 73% of those polled don’t know where to start, even though they currently invest and own securities—in fact, only 5% of respondents reported knowing a lot about RI.
To help, investors want advisors to suggest suitable investments in the RI space and for financial institutions to offer more educational information. This would make them “more confident in the financial performance of RI funds,” says RIA, a result that respondents said would drive more investment and interest.
And it shouldn’t take much to start RI conversations with clients, given RIA finds “a large proportion of Canadian investors see the long-term benefits of investing in companies with strong ESG performance, with 77% strongly or somewhat agreeing that [these] companies are better long-term investments.”
Unsurprisingly, younger investors are more likely to try out RI: 85% percent of those aged 18 to 35 are interested, compared to 80% of those aged 36 to 65 and 69% of respondents aged 55+. This is partially because people’s interest correlated with their time horizons; consider that only 43% of investors say they’re very likely or somewhat likely to invest in an RI fund or product in the next six months versus 64% over the next five years, says RIA.
So don’t wait to kick start the conversation, contact the Wooding Group to learn more!
The Wooding Group at CIBC Wood Gundy, 780 498-5047