Australian financial advisors are increasingly turning to sustainable investing, according to a new report.
In the year through September 2018, the number of advisors Down Under who said they provide clients with advice on responsibly managing their money increased from 19 percent to 34 percent, according to Investment Trends’ 2018 Adviser Product and Marketing Needs Report.
“While still early days, planners are…responding to rising consumer interest in investments that incorporate ethical, environmental, social and governance [ESG] factors,” said Investment Trends research director Recep Peker in Independent Financial Advisor, a Sydney-based trade publication. “In fact, responsible investing is gaining popularity among planners of all ages, not just Millennials.”
The Investment Trends report surveyed 766 financial planners in Australia.
Planners familiar with goals-based investing – a management approach that does not necessarily reflect sustainable investing but is often part of an ESG strategy – rose from 56 percent to 62 percent, Peker added.
“The goals-based investing approach is gaining traction among planners as it helps foster greater planner-client engagement, while at the same time focuses the conversation on their clients’ lifestyle goals instead of short-term investment performance,” he said.
At the end of 2017, Australian-held responsible investments totaled A$866 billion (US$623 billion/€543.4 billion/CHF 611.20), a 39 percent increase from the year before and more than 55 percent of total assets professionally managed in Australia, according to the Responsible Investment Association Australasia.