BMO Global Asset Management Launches MyESG™ to Help Align Investments and Beliefs
BMO Global Asset Management (BMO GAM) has launched MyESGTM an online tool to help advisors and individual investors better understand ESG (Environmental, Social and Governance) investing preferences. MyESGTM uses data collected through a BMO GAM survey to help guide the discussion between investors and advisors.
The BMO GAM survey, conducted in conjunction with DCIIA Retirement Center, found four distinct ESG investing personalities:
- ESG Motivated (22 per cent) – Does not separate belief from investment decisions. Such investors are likely open to numerous ESG-related options and feel strongly about shareholder activism
- ESG Ready (30 per cent) – Sees value in ESG, but still tends to separate investment choices with personal beliefs. There is opportunity for advisors to further educate investors on how their beliefs are investable
- ESG Pragmatic (27 per cent) – Approaches ESG from a portfolio perspective, basing investments on financial goals over values. These investors likely need to see that ESG investments provide the right profile for their risk and return appetite
- ESG Skeptical (21 per cent) – Positive impact is not these investors’ motivation, and ESG investments likely need to demonstrate solid risk-adjusted returns. Advisors can start discussions with investors citing examples of where material ESG considerations impacted a company’s performance
“When it comes to ESG investing, there is not a one-size-fits-all conversation for advisors and investors,” said Kristi Mitchem, CEO, BMO Global Asset Management. “By using these personas, we are looking to deepen the conversation and close the gap between ESG beliefs and investing habits. BMO GAM has been a leader in responsible investing for over 30 years and we are proud to continue to find innovative ways to build a sustainable future – a key pillar of BMO’s Purpose to Boldly Grow the Good in business and in life.”
Other highlights from the BMO GAM survey include:
- The majority of investors (72 per cent) strongly agree companies can have a positive impact on the world and make a profit
- Roughly a quarter of investors asked their advisor to recommend ESG investments (28 per cent) or had advisors recommend ESG investments (26 per cent) in the last two years. Over half (56 per cent) plan to ask their advisors about ESG investing in the next year
- High-net-worth individuals are more likely to believe it is possible to measure the positive or negative impact a company can have on the world
- Only seven per cent of investors disagree that shareholder voting could be a powerful way to influence companies to improve sustainability and fair practices over the long term
To find out your ESG investing persona, please visit: http://www.bmo.com/myesg
MyESGTM and the BMO GAM survey are intended for educational purposes only and should not be acted upon without obtaining specific legal, tax and investment advice from a licensed professional. The information, analysis and opinions expressed herein are for general information only and are not intended to provide specific advice or recommendations for any individual security. Please speak with your investment professional to determine the solution that best meets your individual investment needs and circumstances.
About the BMO Global Asset Management ESG Beliefs and Behaviors Survey Fielded in November and December 2019, the study is based upon 2,020 high income and high net worth working and retired individuals between the ages of 30-75 (household income of $150,000 and higher and net worth of $1 million or more). The sample was evenly divided between the U.S. and Canada. The data was collected using an online data collection methodology. The sample size has a maximum sampling error of +/- 2.2 percentage points. The questionnaire was developed by DCIIA Retirement Center and BMO GAM and the research analysis was performed by DCIIA Retirement Center.