Podcast Episode Details
Back to Podcast Episodes
Do Investors Care About Faith-Based Investing? With Shaun Morgan
Episode 348
Shaun Morgan is the Director of Product Marketing at Eventide Asset Management, an underwriter of this program.
IS THERE A NEED TO REBRAND "FAITH-BASED INVESTING"?
Shaun Morgan discusses the ambiguous understanding of "Faith-Based Investing" among investors who consider faith important in their lives. Eventide's survey reveals that terms like "Values-Based Investing" and "Faith-Based Investing" often lead to neutral or unfamiliar responses, suggesting a gap in communication and understanding.
- The term "Faith-Based Investing" does not resonate strongly with many, even those who prioritize their faith.
- A survey indicates a general lack of awareness and understanding about investing terms related to faith and values.
- Neutral responses to these terms suggest a need for clearer definitions and more effective communication.
WHAT INSIGHTS DID THE SURVEY PROVIDE ABOUT INVESTORS' PREFERENCES?
The survey unearthed significant preferences among investors for companies aligned with their values, particularly regarding unethical practices. A substantial majority expressed willingness to divest from companies involved in objectionable activities, such as profiting from pornography or exploiting child labor.
- Many respondents were unaware of terms like "Faith-Based Investing," yet showed a clear preference for ethically aligned investments.
- Specific concerns, such as exploitation and unethical business practices, elicited strong reactions and a willingness to act.
- The feedback suggests a latent demand for investment options that are more closely aligned with personal and ethical values.
HOW DO INVESTORS FEEL ABOUT CHANGING FINANCIAL ADVISORS FOR VALUE ALIGNMENT?
Surprisingly, a significant portion of investors indicated they would change financial advisors to access investments that align with their values. This willingness underscores a substantial gap in the current advisory landscape, where many advisors may not adequately address their clients' desires for values-aligned investing.
- A notable percentage of investors would consider switching advisors for better alignment with their values.
- The survey revealed that many advisors do not discuss values-based or faith-based investing options with their clients.
- This finding suggests a strong, unmet demand for financial advice that incorporates personal values and ethical considerations.
WHAT ARE THE KEY TAKEAWAYS FOR FINANCIAL ADVISORS?
The survey offers critical insights for financial advisors on approaching the topic of values-based and faith-based investing with their clients. It highlights the importance of not assuming clients are familiar with these concepts and suggests that engaging in meaningful conversations about values in investing can deepen client relationships.
- Financial advisors should proactively discuss values-aligned investing options with their clients.
- There is a significant educational gap among both investors and advisors regarding faith-based and values-based investing.
- Advisors who address this gap and actively engage clients on values-aligned investing may enhance client satisfaction and loyalty.
CONCLUSION
This survey gives us insight into how advisors can talk to investors about "faith-based" or "values-based" investing. Overall, Eventide figured out that these terms carry a lot more weight when you describe what they mean.
But people DO care about what they are investing in, and advisors can really show that they care about their clients by having these conversations with them.
DISCLOSURE: Based on a survey of 1,479 respondents who self-identified as co
Published on 1 year, 9 months ago