According to research by RBC Wealth Management, HNWIs in India put the highest emphasis on social impact in the Asia-Pacific region, with over 90% citing it as a key concern, followed closely by China and Indonesia at 89% and Hong Kong at 82%.
The research also found that 70% of HNWIs in Singapore supported social impact investing, as well as 64% in the United Arab Emirates and 60% in the UK.
RBC said its research also showed that HNWIs wanted more support from their wealth managers in achieving their social impact goals, suggesting socially responsible investin, impact investing and donations as potential solutions.
It said wealth management firms that invest time in understanding the importance clients place on driving social impact, and work to identify “appropriate mechanisms” to fulfil these goals, will create “deeper” HNWI relationships over time.
“Going forward, as wealth transfers from one generation to the next, and especially as HNWIs are increasingly unwilling to accept a trade-off between social impact and financial return, there remains a meaningful role for firms to play to help HNWIs drive social impact,” it said.
“Many firms have already taken steps to support HNWIs in this area but it’s clear that more can be done, as more is expected.”
"Positive social impact"
The research also found age to be a factor in socially responsible investment, with three quarters of HNWIs aged under 40 citing it as an important factor compared with just 45% of those over 60.
Among a wide range of factors motivating HNWIs to make a social impact, personal and family values are the most important, with over 90% citing it as the top factor in North America.
Health, diseases and palliative care was found to be the most popular social investment, with over a third expressing a preference towards it, closely followed by education and the welfare of children.
The research also found that the most popular way HNWIs invest in such causes is by making investment choices with a “clearly defined objective to create positive social impact”.
