A survey of investors suggests it would be a good idea
Discussing religion with your clients may not be the first thing on your agenda but a new report suggests it should be.
Boutique firm Crossmark Global Investments surveyed high-net-worth-individuals (HNWIs) across the US and found that having shared values with their advisor was equally as important as sharing religious values with their child's school or teacher (51%) or their doctor (50%). Millennials were more likely to say this than older respondents.
But religion isn’t something that comes up in client-advisor conversation according to the poll; 73% of clients said this has never been discussed, although it is more likely among older clients.
The conversation may be important though as investors are keen that their investment portfolios should be aligned with their religious values.
Investors under 50 are significantly more likely to want to build a portfolio that reflects their religious values (44%), but just over half (51%) of those ages 23-34 prioritize building a portfolio that reflects their values. Investors also believe that aligning their portfolio with their values will make achieving their investment goals easier.
Aligning investments with religious values is considered a good strategy for achieving financial goals by half of respondents, rising to 65% of 25-34 year olds.
"Clearly, investors care deeply about aligning their investments with their values, and they are paying attention to how they are invested," said Michael Kern, President & CEO of Crossmark. "Religious values are at the heart of how many people live their lives, and it is important for advisors to recognize what their clients value. At Crossmark, we place significant importance on being able to create and offer customized portfolios for our clients because these decisions are so personal and so unique to each individual."
Among those seeking values-based investments, adult entertainment is the industry that the largest share (41%) would want excluded from their portfolios, followed by tobacco (34%), those with human rights and labour violations (33%), and those with environmental concerns (33%).
