Sustainable Investment Research featuring ‘The Voice of the Adviser’ Robert Norum Commercial...
-
Upload
kelley-wilkins -
Category
Documents
-
view
213 -
download
0
Transcript of Sustainable Investment Research featuring ‘The Voice of the Adviser’ Robert Norum Commercial...
Sustainable Investment Research featuring ‘The Voice of the Adviser’
Robert NorumCommercial Director
Blue & Green Tomorrow
© Blue & Green Communications 2
Background
Four years surveying state of financial advisory market
Market for advice generally – and sustainable, responsible and ethical investment specifically
We also ask IFAs about how they win new clients and their views on the state of the economy
April 2014
© Blue & Green Communications 4
76% of financial advisers in the UK say they get requests for ethical
financial advice
£8.6 trillion representing 21.8% of assets under management is now invested sustainably. The UK leads
the world in this sector
The average ethical fund posted gains of 24% over the last year, compared
with 18% from the average non-ethical fund
Sustainable investments made by Europe’s HNWIs increased by 60% – compared to just an 18% rise in their
total wealth
60% 76%
24%22%
April 2014
© Blue & Green Communications 5
43% would be likely to move their money out of a company that
engaged in unethical or unsustainable activities
63% of investors would like to be offered a sustainable and ethical
option when choosing investments
66% would like to be offered the option to choose a sustainable and
ethical pension product
67% would be concerned about losing money if it was invested in
companies pursuing activities that could be unsustainable in the long-
term, for example in oil and gas
67% 43%
66%63%
April 2014
© Blue & Green Communications
1. How concerned, if at all, are you about current climate change, sometimes referred to as 'global warming’?2. Thinking about the causes of climate change, which, if any, of the following best describes your opinion?
Very co
ncern
ed
Fairl
y conce
rned
Not very
conce
rned
Not at a
ll conce
rned
Don't know
entirely
natural p
roce
sses
mainly natura
l pro
cesse
s
partly n
atural p
roce
sses a
nd human activit
y
mainly human acti
vity
entirely
human activit
y
No such
a thing as c
limate ch
ange
Don't know
Natural p
roce
sses
Human activit
y
20%
46%
23%
10%
1%5%
7%
42%
28%
10%
4%2%
12%
38%
April 2014 Dept of Energy & Climate Change 2013
© Blue & Green Communications 7
“Latest UN median estimate for global population is 9.6 billion by 2050. That’s 2.5 billion more than today. That
was the global population in 1960. ”
April 2014
Extraordinary Facts around Sustainability: # 1
© Blue & Green Communications 9
Do you expect overall economic conditions in the UK to be better or worse 12 months from now?
April 2014
Any better A lot better Better The same Worse A lot worse Any worse
78%
9%
68%
19%
4%
0%
4%
35%
1%
34%
47%
16%
2%
18%
7%
0%
7%
37%
48%
7%
56%
31%
0%
31%
31% 34
%
3%
38%
2013 2012 2011 2010
© Blue & Green Communications 10
Do you believe the Coalition Government’s economic plans will improve or worsen the economic outlook over the next 12 months?
April 2014
Any better Improve a lot Improve Make no difference Worsen Worsen a lot Any worse0%
10%
20%
30%
40%
50%
60%
70%
65%
5%
61%
29%
6%
0%
6%
36%
2%
34%
51%
10%
3%
13%
22%
0%
22% 26
%
48%
4%
52%
38%
0%
38%
16%
47%
0%
47%
2013 2012 2011 2010
© Blue & Green Communications 12
In the last 12 months has the number of clients you work with increased, stayed the same or declined?
April 2014
Any increased Increased a lot Increased Stayed the same Decreased Decreased a lot Any decreased
62%
6%
56%
26%
11%
2%
12%
58%
9%
50%
28%
13%
2%
14%
2013 2012
© Blue & Green Communications 13
In the next 12 months do you expect the number of clients you work with to increase, stay the same or decline?
April 2014
Any increase Increase a lot Increase Stay the same Decrease Decrease a lot Any decrease
73%
6%
66%
20%
7%
1%
7%
51%
7%
45%
22%24%
3%
27%
2013 2012
© Blue & Green Communications 14
Where else do you believe your clients are getting advice from? (Please tick all that apply)
April 2014
Not getting advic
e
Online advic
e sites
Media (press,
radio, tv
)
Another finance
professional (a
ccountants,
stockb
rokers,
etc)
Friends a
nd family
Another IFA
Bank or B
uilding Socie
ty
Workp
lace
47%
41%38% 36%
26% 25%21%
10%
42% 40%43%
16%
33%
19%
38%
8%
2013 2012
© Blue & Green Communications 15
Do you see more or less advised clients turning to any of the following over the next 12 months?
April 2014
Direct purchase Restricted/tied advice Platforms
45%
29%
56%58%
31%
54%
6%
17%
6%5%
18%
7%
More 2013 More 2012 Less 2013 Less 2012
© Blue & Green Communications 16
On average, in the last 12 months are your clients requiring more or less advice/management/ planning from you?
April 2014
Any "More advice"
A lot more advice
More advice The same level of advice
Less advice A lot less advice Any "Less advice"
50%
4%
46%48%
2% 1%2%
50%
5%
46% 46%
3%1%
4%
2013 2012
© Blue & Green Communications 17
“We’re going to need more food in the next 40 years than has been produced in the last 8000.”
April 2014
Extraordinary Facts around Sustainability: # 2
© Blue & Green Communications 19
Do you think the RDR has benefitted or harmed the interests of your CLIENTS? Pre-2013, the question was “will benefit or harm”
April 2014
Any benefit Benefited a lot Benefited a little Neither harmed or benefited
Harmed a little Harmed a lot Any harm
34%
8%
26% 27
%
24%
15%
39%
27%
9%
19%
27%
26%
21%
46%
25%
4%
21%
42%
21%
13%
33%
25%
0%
25%
34%
38%
3%
41%
2013 2012 2011 2010
© Blue & Green Communications 20
Do you think the RDR has benefitted or harmed the interests of your FIRM?
April 2014
Any benefit Benefited a lot Benefited a little Neither harmed or benefited
Harmed a little Harmed a lot Any harm
39%
14%
25%
35%
21%
5%
26%
42%
17%
24%
23%
27%
9%
36%
42%
17%
25%
29%
17%
13%
29%
28%
3%
25%
34%
38%
0%
38%
2013 2012 2011 2010
© Blue & Green Communications 21
Overall, has RDR been a success or failure in your experience?
April 2014
Any succe
ss
A succe
sss
Qualified su
ccess
Neither a
succe
ss nor a
failu
re
Qualified fa
ilure
A failu
re
Any failu
re
26%
9%
17%
45%
19%
10%
30%
2013
The biggest changes are seen as being greater transparency, increased professionalism for the industry but fewer clients served.
© Blue & Green Communications 22
“Half of all the carbon put into the atmosphere by mankind has been since 1973.”
April 2014
Extraordinary Facts around Sustainability: # 3
© Blue & Green Communications 24
What is the SINGLE most important piece of information, other than their name and contact details, that you need from a prospective client to win their trust and business?
April 2014
Objective
s and goals
Attitude to ris
k
Family si
tuation
Wealth
Ethical p
erspecti
ves
Tax inform
ation
Investm
ent exp
erience Age
Income
74%
13%
7%3% 2% 1% 1% 1% 0%
© Blue & Green Communications 25
What percentage of your firm's income do you spend per annum on new client generation/marketing?
April 2014
Less than 10% 11-20% 21-30% 31%+
82%
15%
2% 1%
79%
17%
3%1%
79%
17%
4%0%
81%
16%
3%0%
2013 2012 2011 2010
© Blue & Green Communications 26
On average how much money (£s) would you invest to acquire a single new client
April 2014
2013 2012
559.60
508.53
312.66 303.96
246.93
204.57
Total Your time Advertising/marketing spend
© Blue & Green Communications 27
IFA spend based on 2013 growth segments
April 2014
Clients increased Clients stayed the same Clients decreased
1239.24
413.06
528.06
775.3
237.72
320.83
463.94
176.34207.22
Total Time Advertising & Marketing
© Blue & Green Communications 28
What methods do you mainly use to generate new clients?
April 2014
Yourethicalmoney.org
Email - bought list
Radio advertising
Direct mail - bought list
UK Sustainable Investment and Finance Association (UKSIF)
Worldwise Investor/Blue & Green Investor
Telemarketing - bought list
Ethical Investment Association (EIA)
External marketing agency
Telemarketing - own list
Press advertising
Direct mail - own list
Internal marketing team
MyLocalAdviser.co.uk
Exhibitions/conferences/events
Email - own list
Online marketing
Unbiased.co.uk
Worth of mouth/recommendation
0.0%
1.0%
1.0%
1.5%
2.0%
2.0%
2.5%
4.0%
7.1%
9.1%
10.6%
14.1%
15.2%
15.7%
17.7%
23.7%
25.3%
34.3%
83.8%
2013
© Blue & Green Communications 29
“Recent FAO analysis suggests that wasted food is the largest emitter of greenhouse gases – after the
US and Chinese economies.”
April 2014
Extraordinary Facts around Sustainability: # 4
© Blue & Green Communications 31
On average, in the last 12 months are your clients seeking more or less specific ETHICAL advice/management/planning from you?
April 2014
Any "More advice"
A lot more advice
More advice The same level of advice
Less advice A lot less advice Any "Less advice"
8%
1%
8%
57%
9%
1%
10%10%
1%
10%
51%
10%
2%
13%
2013 2012
© Blue & Green Communications 32
76% of financial advisers in the UK say they get requests for ethical financial advice
April 2014
Ethical advice is asked No ethical investment advice is ever requested
76%
24%
73%
27%
2013 2012
© Blue & Green Communications 33
Genetic engineering
Alcohol production
Poor relations with employees, customers or suppliers
Nuclear power generation
Gambling
Exploitation of animals for medicine
Poor environmental practices
Pornography or violent material
Exploitation of animals for cosmetics
Human rights abuses
Tobacco production
Manufacture or sale of weapons
7%
10%
10%
15%
18%
27%
32%
47%
48%
49%
60%
77%
Sector clients are MOST KEEN TO AVOID investing in?
Sectors clients are MOST KEEN to invest in?
Mass transportation
Sustainable travel/tourism
Organic food
Social enterprise/profit-for-purpose businesses
Biofuel
Water supply and treatment
Sustainable forestry
Sustainable agriculture and fishing
Recycling
Clean technology (non-energy)
Fair trade
Renewable energy
3%
4%
14%
21%
25%
30%
33%
34%
42%
48%
48%
78%
April 2014
© Blue & Green Communications
A stubborn myth: “No one likes renewable energy”
Do you support or oppose the use of renewable energy for providing our electricity, fuel and heat?
Renewable energy industries and developments provide economic benefits to the UK
I would be happy to have a large scale renewable energy development in my area
Renewable energy developments should provide direct benefit to the communities in which they are located
77%
71%
56%
81%
5%
7%
21%
4%
Oppose Support
April 2014 Dept of Energy & Climate Change 2013
© Blue & Green Communications 35
Which of these ethical fund providers do you use most often?
April 2014
Friends P
rovident S
tewardship
Ecclesia
stica
l
Aberdeen
Kames
Jupiter
Standard Life
Alliance
Trust
Rathbone
Aviva In
vesto
rsF&C
Henderson
42%
36%
32%
30%
28%
23%
18%
15%
14%
13%
12%
36%
31% 34
%
23%
31%
24%
12%
27%
25%
17%
2013 2012
© Blue & Green Communications 36
Biggest risers
2013 2012 Growth
Premier 5.1% 2.3% 122%
Quilter Cheviot 5.6% 3.3% 70%
Wheb AM 5.6% 3.3% 70%
Schroders 7.3% 5.1% 43%
Rathbone 15.3% 11.6% 32%
Kames 29.9% 23.3% 28%
Scottish Widows 7.9% 6.5% 22%
Friends Provident Stewardship 41.8% 35.8% 17%
Ecclesiastical 35.6% 30.7% 16%
April 2014
© Blue & Green Communications 37
Conclusions
The increased confidence in the economy this year is truly striking– Only 7% thought it would improve in 2012, 78% think it will improve in
2014
Advisers are expecting more clients requesting more advice– 73% expect to have more clients
In terms of sustainable, responsible and ethical investment we see more advisers getting request for it, from an increasing number of clients– 76% say they get requests for sustainable, responsible and ethical
investment advice
April 2014
© Blue & Green Communications 38
”We do a lot of things for reasons besides profit motive.”
“We want to leave the world better than we found it.”
“When we work on making our devices accessible by the blind, I don’t consider the bloody ROI.”
“If you want me to do things only for [return on investment] reasons, you should get out of this stock.”
April 2014
Tim CookCEO - Apple
Final word