Nordea Asset Management asked 1,200 individual investors from Germany, Spain, Italy, France and Switzerland for their opinions. All survey respondents currently use a financial advisor. The results indicate that many financial advisors have not yet taken advantage of the ESG opportunity related to the upcoming regulation.
“European investors have recognized that sustainability is a financial risk and would like their financial advisors to introduce more ESG products. They also said their lack of knowledge is a major barrier to investing in ESG products – they need clearer and simpler explanations.” Nordea AM comments on the survey results, referring to the following detailed findings:
- Outcome #1: “European advisors should step up their efforts to prepare for the new MiFID and sustainability rules”
- 39% of clients surveyed stated that lack of knowledge and experience is the biggest obstacle to ESG investments
- 81% of customers say they need clearer and simpler explanations about ESG products
- 73% Consultants would like to introduce them to more new ESG products
- Outcome #2: “Advisors play a crucial role, but have only partly kept pace with upcoming regulations”
- 73% of respondents identified their counselor as the main source of ESG information
- 96% of investors trust their advisor to have a good understanding of ESG, but more than half have not discussed ESG products with their advisor.
- 62% They have not received an offer of an ESG product from their counselor in the past 12 months. The entry into force of the MiFID II amendments next year provides a great opportunity for consultants.
- Insight #3: “Retail investors confirm their desire for more ESG products”
- 76% They increased their investment in ESG over the past 12 months
- 72% are satisfied with the performance of their investment in ESG
- 71% Plan to increase ESG allowances over the next 12 months
“More than half of retail investors surveyed named their financial advisor as the primary source of ESG information. This presents a real opportunity for financial advisors,” says François Passante, ESG President at Nordea Asset Management. “To use it, the survey shows that they need to improve their knowledge of ESG and the way they explain the basics of ESG and their products to their clients. This is where partnering with asset management companies, and years of ESG experience as well as demonstrating ESG, product and support skills can make a real difference.” “
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