Global X on the Rise of Responsible Investing
The following clip and transcript, from our ‘Investing in Conscious Companies Webinar,’ discusses the rise of responsible investing, not only from institutional investors, but also from individuals as well.
Over the last few years, we have really begun to see an increase in and acceleration in the dollars that are invested in sustainable or SRI strategies. Since 2005, the dollars invested in a sustainable and responsible manner have increased from about 2.3 trillion to over 6.5 trillion. It’s not just being driven by institutions, pension funds, or foundations that have a mandate to invest in this way. There’s been a lot of surveys that have come out over the last few years which have really indicated that this is also being driven by the end investor, individual investors who are going to their financial advisors and asking for this type of exposure.
74% of investors would prefer to work with an FA who can provide both competitive returns and social impact, 70% said they would have a stronger relationship with their FA if their personal values were taken into consideration, and 65% were more likely to stay with an advisor who could talk to clients about responsible investing. We’ve also seen some other surveys come out. One that was interesting to me was that Millennials are two times more likely to consider an investment for both its potential for returns, as well as its impact. This is happening both at the institutional level and at the individual investor level, and it’s a trend that really is starting to pick up and accelerate.