Diverse investor needs

Individual investors’ needs vary greatly.

Some are very specific and prescriptive about what they do and don’t want, others are not.  The following are examples of the variety an adviser may come across:

1. Attitude to risk and investment aims vary. These are likely to be as a result of their personal situation including – for example; investment experience, age, health, dependents, income, amount of money to invest, reason for making an investment, investment term.

2. Motivations and therefore desired approaches vary. For some investors SRI is all about making a difference through supporting and encouraging great companies or avoiding activities they dislike. For others the primary motivation is making money.  Many wish to combine both.

3. Investor’s views can change over time: views can change as a result of a personal experience, or because ‘going green’ is now very much more popular and high profile.

4. Depth of interest in issues area vary. Some investors may be well informed and ask for lots of information on a particular subject; others may simply want to know an investment is managed in a green or ethical way.  Most are somewhere between the two extremes.

5. People are interested in different issues. For example, some are primarily interested in environmental issues; others wish to focus on social issues. Some may wish to focus on particular areas such as food or water supply.

6. Some people are only interested in one or two issues, others are interested in a wide range.

7. Views vary. Even people who say they are interested in a particular issue may have different views. For example – some people may want to invest in funds that engage with oil companies or banks to encourage better practices, others may wish to avoid them, or only support industry leaders (‘best of sector’).

8. Outlooks vary. Some investors want to seek out new opportunities and solutions by focusing on new, emerging issues, others prefer to focus on higher profile, longer standing and perhaps better understood opportunities or challenges.

9. Personal experience of companies varies. Some people have experience of, or views on, the behaviour of particular companies. They may therefore wish to support or avoid them.

10. Proportion of investment. Some people want to invest a small proportion of their money in SRI, others 100%.

SRI Services materials are for information only and intended for use only by financial services professionals. We are not authorised or regulated, can not offer advice and do not deal with individual investors. The information we supply is not to be regarded as endorsements or recommendations and we recommend intermediaries use the information we publish in conjunction with other sources. Whilst we make every effort to ensure our information is up to date and accurate we can not be held responsible for decisions made using our services or those linked to our sites.

Registered Company: SRI Consultants Ltd. Company No: 03904843