NEW YORK, April 15, 2019 /PRNewswire/ -- A major new
research study released today from Newton Investment
Management, a BNY Mellon Investment Management firm, revealed that
more than half (55%) of American investors are unfamiliar with the
concept of "Social Investment," defined here as the collective term
for investments that seek to achieve some combination of economic,
social, and environmental goals (ESG, responsible investing,
etc.).
"The study results make us ask why social investment isn't more
widely understood and why it's not been more widely adopted in the
U.S.," said Julian Lyne, Chief
Commercial Officer of Newton Investment Management. "One
explanation is that investor interests need to be better matched
with social investment options that make sense to investors. This
study makes a strong case for the importance of asset managers with
expertise in the space helping connect the dots for investors
between social interests and investment outcomes they're looking
for."
Newton's Social Investment research study, created by Oxford
Risk and fielded by Research Now, surveyed nationally a
statistically relevant group of 1,023 individual investors age 18
or older with at least $40,000 in
investible assets. The study examined individual investors'
attitudes and behaviors toward social investment, what drives
investor interest, investor goals, and reasons that prevent
individuals from social investment.
The research dives deeper into the motivational and attitudinal
factors that individuals differ on, as well as the obstacles that
stop them from investing and the steps that could be taken to
engage investors based on their past experiences with social
investment. While the study found that in general demographic
variables are not strong predictors of interest in social
investment, age and household savings proved significant factors.
For example, the study demonstrated a significant divergence
between millennials and Baby Boomers, with 69% of adults 39 or
younger showing interest in social investment compared with just
21% of older Americans over the age of 50. Likewise, households
with greater cash savings balances also diverged, with nearly half
(49%) of households with savings between $500K-$1.5M showing
interest in social investing compared with just 38% of households
with savings of less than $499K.
The study derived six "Social Investment Profiles" that indicate
characteristics of different representative groups of the investing
population, highlighting the barriers and opportunities most
relevant to each type of individual (full Social Investment
Profiles linked here). For example, contrasts exist between
investors who are prepared to trade off liquidity or risk for
social outcomes and those who are not, suggesting that a
broad-brush approach to social investment does not work.
"This research offers valuable, measurable insight on investor
attitudes towards all types of responsible, social investment,
which is an area that Newton has pioneered over the last 40 years,"
said Lyne. "The findings highlight the importance of a tailored
approach to educating and helping connect the dots for investors
between social interests and the investment outcomes they're
looking for."
Complete research study findings, fact sheet, and methodology
are available at the link.
Newton Investment Management Social Investing National
Research Study Methodology
Behavioral finance specialists
Oxford Risk, on behalf of Newton Investment Management, designed
the academic research study, which was fielded by Research Now
across the U.S. among a broad spread of respondents by age, gender,
geographic location, education, and wealth, from October 29-31, 2018. Oxford Risk conducted the
self-administered study online among 1,023 individual investors,
age 18 or older, with at least $40,000 in investible assets.
The sample was representative of the investor population
(i.e., those over 18 with access to some investible wealth),
and captured a broad spread of respondents by age, gender,
geographic location, education, and wealth. The survey took each
respondent approximately 15 minutes to complete, and, to ensure
academically reliable findings, the questions were randomized for
each individual, thus avoiding biases that often arise from
question ordering. The data was put through a battery of
statistical analyses (including factor analysis, cluster analyses,
and fully controlled multivariate regressions) to ensure findings
were valid and robust. No data was requested or collected
concerning specific investment, banking, advisory or similar
financial relationships with Newton Investment Management, Bank of
New York Mellon or any other institution, organization, agency or
firm. Respondents were paid for participating to create an
unbiased sample; all information was self-reported by study
participants.
About BNY Mellon Investment Management
BNY Mellon
Investment Management is one of the world's largest investment
managers, and one of the top U.S. wealth managers, with
$1.7 trillion in assets under
management as of December 31, 2018.
The firm is built around delivering to investors a "best of both
worlds" approach: the expertise and world-class capability of our
individual investment specialists, wedded to a global geographic
footprint, and guided by an unshakable commitment to financial
stewardship. BNY Mellon Investment Management encompasses BNY
Mellon's affiliated investment management firms, wealth management
services and global distribution companies.
BNY Mellon Investment Management is a division of BNY Mellon,
which has $33.1 trillion in assets
under custody and/or administration as of December 31, 2018. BNY Mellon can act as a single
point of contact for clients looking to create, trade, hold,
manage, service, distribute or restructure investments. BNY Mellon
is the corporate brand of The Bank of New York Mellon Corporation
(NYSE: BK). Additional information is available on
www.bnymellon.com. Follow us on Twitter @BNYMellon or visit our
newsroom at www.bnymellon.com/newsroom for the latest company
news.
About Newton Investment Management Ltd
Newton
Investment Management (NIM) is a London-based global investment management
subsidiary of The Bank of New York Mellon Corporation. NIM and
Newton Investment Management (North
America) Limited (NIMNA) are authorised and regulated by the
Financial Conduct Authority. NIMNA is also registered with the US
Securities and Exchange Commission. Registered address, The Bank of
New York Mellon Centre, 160 Queen Victoria
Street, London, EC4V 4LA.
Registered in England No. 01371973 (NIM) and No. 2675952 (NIMNA).
With assets under management of $59.5B as of December 31,
2018, Newton provides investment products and services to a
wide range of clients, including pension funds, charities,
corporations and (via BNY Mellon) individuals. News and other
information about Newton is available at www.newtonim.com and via
Twitter: @NewtonIM.
Media Contacts:
Andrew
Conn
BNY Mellon Investment Management
212-635-7823
andrew.conn@bnymellon.com
Courtney Woolston
BNY Mellon Investment Management
212-635-6027
Courtney.Woolston@bnymellon.com
Forward-Looking Information
This information may contain forward-looking statements, which
may be expressed in a variety of ways, include the use of future or
present tense language. These statements and other forward-looking
statements are based upon current beliefs and expectations and are
subject to significant risks and uncertainties (some of which are
beyond BNY Mellon's control). Factors that could cause BNY Mellon's
outcomes to differ materially from those described in the
forward-looking statements can be found in the risk factors set
forth in BNY Mellon's Annual Report on Form 10-K for the year
ended Dec. 31, 2018, the Quarterly Report on Form 10-Q for the
period ended December 31, 2018, and its other filings with the
Securities and Exchange Commission. All forward-looking statements
in this news release, speak only as of the date of publication and
BNY Mellon undertakes no obligation to update any forward-looking
statement.
View original
content:http://www.prnewswire.com/news-releases/majority-of-us-investors-unfamiliar-with-social-investment-according-to-national-research-study-from-newton-investment-management-300829832.html
SOURCE BNY Mellon