what hnwis really think - erol bilecen

Created with the support of1

Erol BilecenExecutive DirectorHead Client Services Asset ManagementBank Sarasin & Co. Ltd

Zurich, 8 November 2012

Agenda

Introduction Sustainable Investments of HNWIs

– Size of market– Characteristics of investments

Characteristics of investors Motivations and barriers Conclusions and expectations for the future

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3

Wealth and Innovation

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4

High Net Worth Individuals are Innovators

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Why are HNWI interesting?

They have the freedom to manage risk and return in creative ways by investing in new ideas and technology, and in alternative assets that provide low correlation with traditional markets. (e.g. as former entrepreneurs interested in early-stage seed capital and venture capital)

HNWIs have access to investments that are normally closed to smaller retail investors, and the freedom to move funds quickly without having to perform the extensive due diligence required by institutional investors or foundations.

Many wealthy individuals have a history of giving back to communities and society through charity. impact investing

HNWIs are typically long-term investors whose aim is to preserve capital for the next generations to come. This requires a very long-term perspective on investment that incorporates sustainability considerations, because sustainability issues affect portfolio risk and return

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Facts about the study

Study covering sustainable investments of European individuals with more than US$ 1 million in investible assets.

Third edition in 2012 Sustainable investments are investments that combine investors’ financial

objectives with their concerns about environmental, social and governance (ESG) issues.

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Size of Market

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Sources of Growth

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Commitment to SI by HNWIs

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SI Strategies Used

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Sustainability Themes

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Asset Allocation

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Characteristics of Investors

Significantly more interest from women than men

More demand from entrepreneurs than inherited wealth

More interest from younger generation, but older HNWIs motivated by long-

term risk management

UHNWIs are more likely to invest

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Attitudes to Sustainable Investment

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Perceptions of SI

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Motivations for Investing

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Barriers to Investing

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Barriers: HNWIs vs. Advisors

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Conclusions and Expectations for the Future

European HNWI’s allocation to sustainable investments has grown by 58% from 2009-11

Thematic investments are still the most common: Clean energy, Water, and Green technology most popular themes

Impact investing is growing fast Respondents expect continued

growth of sustainable investment by European HNWIs

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Questions?

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Erol BilecenExecutive DirectorHead Client Services Asset ManagementBank Sarasin & Co. LtdElisabethenstrasse 624002 BaselSwitzerland

Email: erol.bilecen@sarasin.chTel.: +41 (0)61 277 75 62

Anders NordheimHead of Research

Eurosif aisbl331 Rue du Progrès1030 Brussels Belgium

Email: anders@eurosif.orgTel: +32 (0)2 274 14 35

Thank youfor your attention