A new study from behavioural finance experts, Oxford Risk reveals that one in four (24%) European wealth managers are only spending 40 minutes or less to establish the sustainability (ESG) preferences of new investment clients, despite agreeing that this is one of the most important tasks (please see the attached press release).
Its study with wealth managers across Europe found over half (58%) say they take between 41 and 60 minutes to establish the sustainability (ESG) preferences of individual clients. Around 13% say they take between 61 and 90 minutes and four percent spend more than 90 minutes.
Around 90% of European wealth managers agree establishing sustainability preferences is one of the most important tasks when onboarding a new client, the research by Oxford Risk, which builds behavioural risk suitability software to help wealth managers support clients, shows.
The study with wealth managers whose firms collectively manage assets of around €4 trillion shows that too often these sustainability assessments and processes aren’t providing insightful or detailed enough information to base future decisions on. Only one in four (25%) wealth managers say they are very confident in identifying the portion of a client’s investments that should be allocated to ESG investing after using their current processes. One in ten (10%) are unsure about whether they could identify what should be allocated to sustainable investing after the process.
Just around a third (32%) say they are very confident in being able to identify the portion of a portfolio that should be allocated to article 8 and article 9 funds within an investor’s portfolio after using their current process. More than one in eight (13%) don’t know whether they’d be able to do this or not using their current process.
