The Pulse

Fifty Percent of Investors Under 50 Want Shared Religious Values With Their Financial Advisor

Nearly three-quarters of all respondents said their advisor has not asked them about their religious values

HOUSTON, Nov. 20, 2019 /PRNewswire/ — Discussions about religious values are often avoided in business settings, but recent data shows that avoiding the topic as a financial advisor could hurt your business. In the most recent Pew data, 72% of adults in the U.S. reported some religious affiliation.1 Furthermore, a recent survey from Crossmark Global Investments (“Crossmark”), a leading provider of values-based investment solutions, showed that 50% of investors under the age of 50 say it is extremely or very important that their financial advisor shares their religious values.

The nation-wide survey of high net worth investors who identify as religiously affiliated revealed findings about how investors incorporate religion into their portfolios and financial goals.

Respondents indicated that having shared values with their advisor was equally as important as sharing religious values with their child’s school or teacher (51%) or their doctor (50%). This was most pronounced with those in the millennial generation, where 63% reported that it is extremely or very important to them for their financial advisor to share their religious values.

Advisors Never Asked

While investors placed a large emphasis on shared values, nearly three-quarters (73%) of investors surveyed reported that their advisor has never asked them about their religious values or religion. Older investors were least likely to have discussed religious values with their advisors. Ninety percent of those over 50 said they had not been asked about their religious values compared to roughly 40% of investors aged 23-34.

In addition to wanting shared religious values with their advisors, investors increasingly want their portfolio to be aligned with their religious observances. Investors under 50 are significantly more likely to want to build a portfolio that reflects their religious values (44%), but just over half (51%) of those ages 23-34 prioritize building a portfolio that reflects their values. Investors also believe that aligning their portfolio with their values will make achieving their investment goals easier. Fifty percent of respondents under 50 think it is easier to achieve their investment goals with a values-based approach, and close to two-thirds (65%) of investors aged 23-34 think aligning your portfolio with your values makes it easier to achieve your investment goals.

What Your Clients Value

“Clearly, investors care deeply about aligning their investments with their values, and they are paying attention to how they are invested,” said Michael Kern, President & CEO of Crossmark. “Religious values are at the heart of how many people live their lives, and it is important for advisors to recognize what their clients value. At Crossmark, we place significant importance on being able to create and offer customized portfolios for our clients because these decisions are so personal and so unique to each individual.”

Clearly, investors care deeply about aligning their investments with their values, and they are paying attention to how they are invested...

When it comes to creating a values-based portfolio, investors are divided on what they wish to screen out of their portfolios. Adult Entertainment was cited as the industry that investors would most want to screen out, at 41% of respondents, followed by tobacco (34%), human rights and labor violations (33%) and environmental concerns (33%).

 

 

About Crossmark Global Investments
Crossmark Global Investments is a boutique investment management firm that provides a full suite of investment strategies to institutional investors, financial advisors, and the clients they serve. For over 30 years we have delivered uniquely-constructed products based on our proprietary, disciplined, and repeatable process. We are especially known for helping our clients align their investments with their values by creating socially-conscious, responsible investment strategies.
1 – https://www.pewforum.org/wp-content/uploads/sites/7/2019/10/Detailed-Tables-v1-FOR-WEB.pdf