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Investors cautious in allocation to sustainable investments: study – Investment Executive

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The study found that 8% of respondents were currently investing in sustainable investment–related mandates and strategies. Of that group, 91% said sustainable investing (SI) was important to them. About six in 10 (62%) respondents overall said they intended to pursue SI in the next 12 months.

However, about half (51%) of current and future SI investors allocated less than 25% of their portfolios to sustainable investments or intended to do so. Only 17% said they would allocate more than 50% of their portfolios to sustainable investments.

“If nearly all SI investors say sustainable investing is important to them, why does their behaviour suggest otherwise?” the study asked.

It found a difference in terms of ESG issues that investors found important to them versus those they found important as an investment strategy.

For instance, privacy and data security was the top ESG-related issue (falling under governance) cited by respondents, with 74% having said it was “very important.” Despite this, “it was not an SI issue that investors would be willing to consider for their portfolios” if such an investment existed, the study stated.

After privacy and data security, other SI issues respondents found “very important” were responsible water management (70%), workplace and worker health and safety (69%), product safety and quality testing (67%) and human rights (also 67%).

While social issues made up three of those top five, environmental issues turned out to be the most important ones that investors considered for their actual investment strategies. Theses consisted of clean energy sources (60%); carbon and other greenhouse gas emissions (53%); biodiversity, land and water protection (46%); responsible water management (44%); and waste management (also 44%).

There are plausible explanations for the difference between what’s important to clients and what their actual investing practices are, the study said.

“One of the most logical [reasons] may be that what people feel doesn’t always translate into what people do,” it said. Behavioural science calls that the “say-do gap.”

Another possibility may be that investors who already incorporated environmentally focused mandates in their portfolios see those mandates as having a proven performance history compared with those focused on social issues, “which are just starting to gain in popularity,” the study said.

Yet another possible explanation is that the “status quo effect” could be at play; namely, those invested in environmental funds may already view themselves as sustainable investors and therefore see no need to diversify into other SI areas.

The study suggested that, to build the right SI strategy for clients, advisors need to ask them more than which SI issues are important to them.

“A thorough discovery process that includes exploration of the client’s goals and risk tolerance can help to focus potential sustainable investing recommendations to the client’s specific needs,” it said. “[J]ust because an issue is important to a client, it does not mean that they will want to make it part of their investing strategy.”

Maru Group conducted the online survey on behalf of TD Wealth between Oct. 22 and Nov. 9, 2021, in both English and in French, with geographic distribution across Canada.

The polling industry’s professional body, the Canadian Research Insights Council, says online surveys can’t be assigned a margin of error because they don’t randomly sample the population.

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Investment

Investment firm acquires Henri-Lloyd >> Scuttlebutt Sailing News – Scuttlebutt Sailing News

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Published on July 4th, 2022
<!–by Editor–>

Swiss performance brand ODLO will acquire the 60-year-old British sailing brand, Henri-Lloyd. The acquisition comes months after ODLO announced the acquisition of Janus – a merino clothing manufacturer – and solidifies the brand’s commitment to growth and scale through acquisition across their portfolio.

These brands are among the holdings of Monte Rosa Capital (MRC), a privately owned investment firm which primarily focuses on Sport & Leisure and Health.

Scuttlebutt had previously reported how the sailing gear brand had gone into administration in 2018, and then relaunched in 2019. Henri-Lloyd is now technical clothing partners with the British SailGP Team and the America’s Cup challenger INEOS Britannia.

The Henri-Lloyd team will remain located in the UK in its home city of Manchester but will collaborate with the ODLO group in the future development of the brand and a new generation of innovative products.

“The acquisition of Henri-Lloyd by ODLO opens up tremendous opportunities for the brand to reach its true potential to the benefit of all shareholders, both current and future,” added Hans Eckerström, Henri-Lloyd Chairman of the Board. “Joining a family of successful companies that share values and goals will accelerate our growth.”

ODLO clothing is designed in Switzerland and serves markets in nearly 40 countries around the world. MRC has offices in Oslo, Norway and Zuos, Switzerland with current holdings including ODLO, Janus, D-Fetch, Meshtech, and Dignio.

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Paul Holba appointed Chief Investment Officer of Empire Life Investments Inc. – Yahoo Finance

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KINGSTON, ON, July 4, 2022 /CNW/ – Empire Life Investments Inc. (ELII) today announced the appointment of Paul Holba, CFA, as Chief Investment Officer. Mr. Holba also joins the executive leadership team of parent company The Empire Life Insurance Company (Empire Life).

Empire Life (CNW Group/The Empire Life Insurance Company)

Empire Life (CNW Group/The Empire Life Insurance Company)

Mr. Holba joined Empire Life’s retail distribution division in 2009, bringing with him more than 20 years of experience in the Canadian investment industry through progressively senior roles with global investment management firms and the asset management division of a major Canadian bank. He has held senior management roles in both Empire Life and ELII since then. For the past seven years, he has held the position of Vice-President, Retail Distribution, building strong relationships with and between advisors, investment professionals and strategic partners.

“Paul has deep knowledge of the investment and insurance sectors and has proven himself as a highly respected and engaging leader within the company and the industry,” says Mark Sylvia, President and CEO of Empire Life and ELII. “Under Paul’s leadership, the ELII investment management team will continue its focus on performance through investing in attractively valued, high-quality businesses with an emphasis on downside protection for our customers and institutional investors.”

About Empire Life Investments Inc.

Empire Life Investments Inc. is a wholly owned subsidiary of The Empire Life Insurance Company. The company manages and offers mutual funds and is the portfolio manager of Empire Life segregated funds, including Empire Life Guaranteed Investment Funds.

About Empire Life

Established in 1923 and a subsidiary of E-L Financial Corporation Limited, Empire Life provides individual and group life and health insurance, investment and retirement products. The company’s mission is to make it simple, fast and easy for Canadians to get the products and services they need to build wealth, generate income, and achieve financial security. As of March 31, 2022, Empire Life had total assets under management of $18.6 billion. Follow us on social media @EmpireLife or visit empire.ca for more information.

SOURCE The Empire Life Insurance Company

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View original content to download multimedia: http://www.newswire.ca/en/releases/archive/July2022/04/c4634.html

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Why ETFs are a good investment value – Yahoo Finance

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Exchange-traded funds, or ETFs, can be a good way to diversify your portfolio and can be cost-effective.

“ETFs are generally less costly and easier to access for investors,” said Ben Johnson, Morningstar’s director of global exchange-traded fund research. “They offer investors access to a whole host of investment strategies, from total market indexes to actively managed portfolios of stocks linked to the metaverse, with low fees, superior tax efficiency, and often much smaller investment minimums—typically as low as the price of a single share.”

Here’s what industry experts have to say about how to make ETFs sound investment values.

Johnson notes it’s important to know and respect what the “ET” in ETF stands for. “ETFs trade like stocks, and investors should practice good hygiene when it comes to trading them to avoid running up a big trading cost bill,” he said.

ADVICE FOR THE FIRST-TIME ETF BUYER

Specifically, Johnson explained that investors should consider using limit orders when buying and selling ETFs.

“This will help to ensure that they get the price they ask for (if not better) and prevent them from transacting at a price they might not like,” he said.

ETFs are fully transparent, said Tom Lydon, vice chairman with VettaFi.

“They frequently update their holdings, so investors know exactly what they are getting themselves into,” he said.

PICKING AN ETF: EXPERTS WEIGH IN

Also, Lydon explained that ETFs are more tax efficient than traditional open-end funds. Due to structural differences, said Lydon, ETFs do not incur a capital gains tax like how mutual funds would, but still come with a capital gains tax upon the sale of the ETF by an investor.

According to Lydon, ETFs may be seen as an improved version of their mutual fund cousins, providing the benefits of mutual funds and then some.

“Some of the key selling points of ETFs beyond traditional open-end funds may include things like lower expense ratios, flexible intraday trading, transparent nature and improved tax efficiency for taxable accounts,” Lydon said.

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Finally, unlike mutual funds that are bought and sold once per day after the market closes, ETFs trade all day long.

“If you are familiar with trading individual company stocks on a brokerage platform, then picking up an ETF should be a similar experience,” continued Lydon.

Furthermore, he said more knowledgeable investors may also utilize various trade orders for executing ETF trades, including limit orders and stop-limit orders, along with short selling, to better manage their investment experience.

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