A recent survey by global wealth and asset management firm Lombard Odier in Asia found that almost all (98%) of those who participated were looking to increase their allocations to impact investment, with 3% of these seeking to make 100% of their portfolio impact-driven.
The survey polled more than 110 next generation HNWI and UHNWI clients of partner banks associated with Lombard Odier from Asian markets. It found that improved availability of good impact investing solutions with demonstrated performance was a major factor behind this shift (68%), alongside rising concerns about social and environmental challenges (52%).
A shift of interests
Vincent Magnenat, chief executive of Asia Pacific at Lombard Odier, said the survey shows a shift in client interest driven in part by the next generation.
“During our most recent Next Generation Forum with young family business members from Asia, impact investing emerged as one of the most notable themes, with participants showing great willingness to gear their portfolios for impact for wide-ranging reasons largely driven by social-conscience,” Magnenat said.
Lombard Odier’s survey results complement a survey the firm carried out in 2016, which found that more than 99% of respondents agreed that social responsibility had become important following the 2015 Paris UN climate change conference.
Despite the increase in willingness among the next generation HNWIs and UHNWIs to invest with impact, more than half (56%) of those surveyed were yet to make a single impact investment, and a further quarter (26%) of those surveyed were unfamiliar with the basics of Impact Investing.
Magnenat said: “Even among a next generation audience we continue to see HNWIs and UHNWIs in Asia take a cautious approach to increasing allocations to impact investing strategies.
“However, we do not believe it will take long for the gap to narrow in Asia with improving availability of investment instruments driving this change.”