The 51-page World Wealth Report 2014, published by Capgemini and RBC Wealth Management, said this trend presented “a meaningful role for firms to play to help HNWIs drive social impact”.
The report said: “The vast majority of HNWIs believe that driving social impact is important, especially the younger generation.
“Wealth management firms that invest time to understand the importance clients place on driving social impact and who work with their clients to identify appropriate mechanisms to fulfil these goals will deepen and grow HNWI relationships over time.”
The report also said “a significant challenge” for firms was the lack of standard and reliable metrics to meaure, manage and communicate the performance of social impact investing.
It added: “Industry professionals continue to seek innovative ways to refine their measurement approach such as through the creation of multi-factor measurement models that consider the type, scale and depth of impact.”
Adviser view
Bob Wilson, director of Norwich-based Greensky Wealth, said: “Traditionally there has been a trade-off between ethical investing and financial return, and wanting to invest ethically does limit choice. Having said that, recently we have seen some ethical funds keep pace with more mainstream funds, so there are options that can deliver both ethical and financial returns.”
