FactSet Measures COVID-19 Impact on High Net Worth Investors Globally - Seite 2

Diversification is now considered just one of several ways to mitigate portfolio risk. While 90% want to maintain a balanced and diversified portfolio, 85% of HNW clients prefer to invest principally in companies they know and trust. Similarly, three-quarters are seeking stocks in companies that have strong ethics.

72% of investors are interested in learning more about responsible investing. Millennials are paying more attention to operational and reputation risk, demanding company insights on supply chain practices, labor treatment, and carbon emissions. Gen-X and Baby Boomers (aged 55-75) are more focused on governance insights, such as management profiles, executive pay, CSR efforts, and even political contributions.

Globally, investors’ perceptions vary widely on the definition of responsibility. Responsibility in wealth management is considered important by more than two-thirds of North American HNW clients. In Switzerland, investors are more focused on companies’ carbon footprints, diverse and inclusive workforces, and fair treatment of employees. In Singapore, clients reference companies’ corporate social responsibility (CSR) initiatives.

61% say a transparent investment process is the most important proof point of a responsible wealth management organization. In 2016, this ranked second, after transparency in business performance. Millennials continue to have a broader frame of reference than other clients and are more likely to consider customer feedback and satisfaction, the use of socially responsible investing screening, and company statements on culture.

43% of HNW clients can point to at least one recent socioeconomic trend they want (but have yet) to discuss with their advisor. This rises to 49% of Millennials and 53% of Generation-X (aged 35 to 54). Corporate conduct during the pandemic and environmental issues are front-of-mind global topics that clients expect to connect to their wealth management.

Clients want a 50:50 split in their digital and physical interactions with wealth firms once social distancing is eased. 54% of HNW clients’ wealth management activities took place online during the height of the pandemic, and now 46% say digital wealth management is a better use of their time, rising to 50% of U.S. clients. More than a third of Millennials (under-35s) value the improved access to research and insights.