Responsible saving: what added value for wealth management advisors?

Posted on September 27, 2021, 9:15 AMUpdated on September 27, 2021 at 10:44 am

From management companies to insurers, those who create savings products have taken on real responsibility. Distributors, on the other hand, move forward with less anxiety, due to lack of knowledge or conviction. But always forward! From year to year, studies show it: wealth management advisors (CGP) are increasingly inclined to green the assets of their clients.

According to the latest BNP Paribas Cardif barometer carried out with the Kantar institute, 38% of them said in 2020 that they wanted to strengthen the presence of SRI (socially responsible investment) funds in their business portfolio. A trend confirmed by a study by CPR AM and Insight AM with OpinionWay, which says that in 2020, 49% of CGPs said they offer responsible products to all their customers.

These results are to be put into perspective with the point of view of savers… who are only 12% to declare that they have been offered sustainable products by their advisor according to this same study.

A growing demand

“Objectively, responsible investment remains an ancillary subject with CGPs,” explains Pascale Baussant, member of the National Chamber of Wealth Management Councils (CNCGP) and specialist in responsible investment. And to explain: “Clients already have many subjects to discuss with their advisor, between changing taxation and their patrimonial concerns, so the demand for responsible investment products is advancing, but slowly.” »

Among the top products offered by CGPs are environmental funds, offered by 87% of professionals, according to the OpinionWay study. “Thematic funds are the most legible for clients, so it’s easy for an adviser to start with this first brick in the allocations”, underlines Pascale Baussant.

Brakes to rise

The main obstacle to overcome to accelerate the distribution of SRI savings products is the lack of knowledge of advisers, with still little dedicated training and complex regulations. For this reason, professional chambers play an important role for their members, as illustrated by Pascale Baussant: “The CNCGP has done a lot of work to help transcribe the obligations related to the SFDR regulation (Sustainable Finance Disclosure Regulation, NDRL) , which are subject to insurance brokers with more than three employees. That is to say a good part of the members of the CNCGP, life insurance remains a flagship product for customers.

Despite this setback, SRI has a bright future ahead of it in the wealth management consulting business. “The offer continues to expand. Our challenge in the future will be to sort and select funds that are really committed,” says the professional.

For this, the labels have an important role to play and benefit from the trust of the CGPs: according to the study of CPR AM and Insight AM, they were 85% to consider the SRI label as an indicator of trust in 2020. its transition to an increasingly green business portfolio.

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