More than 60% of global high net worth individuals (HNWIs) see driving social impact with their investments as “extremely or very important”, with Asian HNWIs valuing it higher than any other region in the world. According to research by RBC Wealth Management, HNWIs in India put the highest emphasis on social impact in the Asia-Pacific region, with over 90% citing it as a key concern, followed closely by China and Indonesia at 89% and Hong Kong at 82%. RBC said its research also showed that HNWIs want more support from their wealth managers in achieving their social impact goals, suggesting socially responsible investing, impact investing and donations as potential solutions. In addition, wealth management firms that invest time in understanding the importance clients place on driving social impact, and work to identify “appropriate mechanisms” to fulfil these goals, have a better chance at creating “deeper” HNWI relationships over time. Age is also a huge factor in socially responsible investment, with three quarters of HNWIs aged under 40 citing it as an important factor compared with just 45% of those over 60, siting that the most popular way they invest in such global causes is by making investment choices with a “clearly defined objective to create positive social impact.”
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