It’s the biggest wealth management event on the planet, where advisers, executives and their associates come to learn, network and have a little fun under the California sun. As the inaugural Australian partner, The Inside Network will be front and centre.
Making a connection is at the heart of any financial adviser’s value proposition, the consultant says. But to do that, the right language must be leveraged to understand what a client’s legacy values truly are.
The number one expectation of financial advisers in 2022
The number one expectation Australians have of financial advisers in 2022 is quite straightforward, according to the Responsible Investment Association Australasia (RIAA); they must know about responsible investment. That is according to the more than one thousand people interviewed for the latest Values to Riches survey, 64 per cent of which suggested this was a priority.
The report (the fifth of its kind) is focused on “charting consumer demand for responsible investing in Australia” and is supported by one of Australia’s longest-standing responsible investment firms, Australian Ethical. The survey was taken in January as the latest pandemic wave came to an end, with a reasonably even split of respondents between millennials (31 per cent), boomers (28) and gen Xers (28), suggesting it isn’t only the young that are concerned.
While many managers and advisers fall over themselves in an effort to exhibit their ESG credentials, a growing group of investors are committed, with 17 per cent of the population already investing responsibly. Interestingly, the highest level came from Generation X, or those set to inherit a significant amount of capital in the coming decade.
According to the survey more than 60 per cent of the population now understands what responsible investing means, up from 50 per cent in 2020. The growth was attributed to “negative experiences such as the COVID-19 pandemic, the destruction of Indigenous cultural heritage and extreme weather events have fuelled this awareness.”
There is growing pressure on the nation’s biggest investors and allocators of capital, with 83 per cent of those surveyed expecting both their bank account and super to be invested responsibly as a result. Some 80 per cent also expect their savings to have a positive impact on the world. This highlights two key issues, which is that every person’s view of what is “responsible” can be different, and the difficulty that large institutions are having in engaging with their millions of customers.
This is evidenced by the long list of social and environmental issues consumers want to avoid with their investments. No fewer than 12 options received 40 per cent of responses ranging from animal cruelty, human rights abuses, environmental damage, tobacco, predatory lending and gambling.
Investment managers had best take notice, as some 74 per cent indicated they would consider moving to another provider if their current fund was investing into companies that were inconsistent with their values. Expanding on the advisory market, 47 per cent expect responsible investment recommendations and are seeking “independently verified or certified” products.
“These trends are characteristic of Australians of all walks of life, regardless of where they live, employment status, age or gender,” the report concludes.
