In this post:

  • We ran a series of webinars with MSCI that shared insights and a roadmap for crafting a high-quality sustainable investing experience. In this post, we cover highlights and include replay links.

Webinar Highlights: Crafting a High-Quality Sustainable Investing Experience

I was thrilled to be joined by Jean-Maurice Ladure of MSCI on a recent series of webinars. Jean-Maurice is MSCI’s head of applied research in EMEA and made for an excellent webinar co-pilot as we stepped through sustainable investing trends and insights.

We ran distinct webinars focused on Europe, the US and Singapore. Full replays for each webinar are available here.

Among the topics and insights we covered:

There’s a compelling business case for wealth management firms to craft a high-caliber sustainable investing (SI) experience.

Nearly 2/3 of investors are interested in SI, but the data show that only 1 in 6 clients of them are currently receiving a high-caliber SI experience. Those who do have Net Promoter Scores 90 points higher than those who don’t; higher intent to grow walletshare; and nearly double the referral rate.

Sustainability preferences are highly individualized, and most investors need help discovering what their preferences are.

We shared results using Capital Preferences’ revealed preferences method to elicit investors’ sustainability preferences. Investors vary considerably in their level of altruism, the sustainable investing style that is optimal for them, and which sustainability themes they prefer. SI experiences that are molded for this kaleidoscope of client preferences will do best.

We can combine preference data and ratings data to map investors to “best fit” (personalized) portfolios.

Jean-Maurice and I stepped through how client risk and sustainability preferences can be used together with ESG ratings scores and data to create a personalized best fit portfolio (a “utility optimal” portfolio, in economic terms).

Clients’ preference-to-portfolio confidence is the heart of a high-caliber SI experience.

Wealth managers should focus on building client confidence in SI by helping them discover what their preferences are; by “showing the work” on how a portfolio maps to preferences; and by closing the loop with reporting that shows the client what impact their ESG investments are having, in terms that are meaningful to the client. Jean-Maurice and I laid out how this can be done.

We’re excited to be working with the MSCI team to match our preferences data to MSCI’s ratings datasets. It forms the backbone of how we can help wealth management firms build highly engaging, differentiating client (and advisor) journeys that deliver on the promise of sustainability.

Pat Spenner

Pat heads marketing and strategy at Capital Preferences, driving go-to-market strategy, messaging and thought leadership.

He is a co-author of The Challenger Customer, a Wall Street Journal best-selling book on B2B marketing and sales, and has contributed to Harvard Business Review and blogged for Forbes. He lives on New Zealand’s South Island with his wife, four children and two overactive border collies

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