According to the results of a survey presented at this year’s SRI conference, investment advisors who discuss socially responsible investing practices with clients can build a stronger relationship.
Research presented by Toronto-based NEI Investments
atfound 92% of surveyed individuals say it is important to choose investment products that coincide with their values. Forty three percent of respondents said an advisor who started a conversation on socially responsible investing would be more likely to get their business.
"[SRI] can differentiate you and for advisors this is becoming table stakes," Kim Buitenhuis, a vp with NEI Investments, was quoted as saying. "So, if you don't know something about this, you're going to be left behind if not today then certainly over time."
Of those surveyed 79% said their advisors had not initiated a conversation with them about SRI. Fourteen percent said their advisors had started the conversation. As well, 54% of Canadians believe that an advisor who discusses SRI with them will likely do a better job overall. "People do understand that companies that have governance problems, companies that have environmental problems ... they're not going to be successful in the long term," said Buitenhuis. "So, if you, as an advisor, are thinking about those things you're probably doing a better job than someone who’s not thinking about it."