Do Investors Care About Faith-Based Investing? With Shaun Morgan

Faith & Finance

Shaun Morgan is the Director of Product Marketing at Eventide Asset Management, an underwriter of this program.

IS THERE A NEED TO REBRAND "FAITH-BASED INVESTING"?

Shaun Morgan discusses the ambiguous understanding of "Faith-Based Investing" among investors who consider faith important in their lives. Eventide's survey reveals that terms like "Values-Based Investing" and "Faith-Based Investing" often lead to neutral or unfamiliar responses, suggesting a gap in communication and understanding.

• The term "Faith-Based Investing" does not resonate strongly with many, even those who prioritize their faith.
• A survey indicates a general lack of awareness and understanding about investing terms related to faith and values.
• Neutral responses to these terms suggest a need for clearer definitions and more effective communication.

WHAT INSIGHTS DID THE SURVEY PROVIDE ABOUT INVESTORS' PREFERENCES?

The survey unearthed significant preferences among investors for companies aligned with their values, particularly regarding unethical practices. A substantial majority expressed willingness to divest from companies involved in objectionable activities, such as profiting from pornography or exploiting child labor.

• Many respondents were unaware of terms like "Faith-Based Investing," yet showed a clear preference for ethically aligned investments.
• Specific concerns, such as exploitation and unethical business practices, elicited strong reactions and a willingness to act.
• The feedback suggests a latent demand for investment options that are more closely aligned with personal and ethical values.

HOW DO INVESTORS FEEL ABOUT CHANGING FINANCIAL ADVISORS FOR VALUE ALIGNMENT?

Surprisingly, a significant portion of investors indicated they would change financial advisors to access investments that align with their values. This willingness underscores a substantial gap in the current advisory landscape, where many advisors may not adequately address their clients' desires for values-aligned investing.

• A notable percentage of investors would consider switching advisors for better alignment with their values.
• The survey revealed that many advisors do not discuss values-based or faith-based investing options with their clients.
• This finding suggests a strong, unmet demand for financial advice that incorporates personal values and ethical considerations.

WHAT ARE THE KEY TAKEAWAYS FOR FINANCIAL ADVISORS?

The survey offers critical insights for financial advisors on approaching the topic of values-based and faith-based investing with their clients. It highlights the importance of not assuming clients are familiar with these concepts and suggests that engaging in meaningful conversations about values in investing can deepen client relationships.

• Financial advisors should proactively discuss values-aligned investing options with their clients.
• There is a significant educational gap among both investors and advisors regarding faith-based and values-based investing.
• Advisors who address this gap and actively engage clients on values-aligned investing may enhance client satisfaction and loyalty.

CONCLUSION

This survey gives us insight into how advisors can talk to investors about "faith-based" or "values-based" investing. Overall, Eventide figured out that these terms carry a lot more weight when you describe what they mean.

But people DO care about what they are investing in, and advisors can really show that they care about their clients by having these conversations with them.

DISCLOSURE: Based on a survey of 1,479 respondents who self-identified as committed Christians (defined as having a Christian faith that is important in their life), ages 30+, with a minimum $100K investable assets or $75K household income. 54% of respondents indicate they have a financial advisor. 62% of respondents who have a financial advisor would be willing to change financial advisors in order to get access to investments that align with their values. The survey was conducted by Pinkston, on behalf of Eventide, in October 2023. Third-party sources referenced herein have not been independently verified, nor is Eventide affiliated with any third-parties referenced, unless otherwise noted. Eventide has not independently verified the accuracy or completeness of third-party information. There can be no assurances that the information is accurate or complete. The information is subject to change without notice.

ON TODAY’S PROGRAM, ROB ANSWERS LISTENER QUESTIONS:

• I'm 73, raising my 8-year-old granddaughter, and want to know the best way to grow the money left by my parents for her college, considering a 529 or other options.
• I'm retired with my husband, and we've been saving cash; I'm concerned about the potential for a digital dollar and what it means for our savings.
• At 65 and nearing retirement, my wife and I are debt-free, and I'm wondering if we still need life insurance.

RESOURCES MENTIONED:

• Saving for College
• Schwab Intelligent Portfolios
• FaithFiSound Mind Investing

Remember, you can call in to ask your questions most days at [phone]. Faith & Finance is also available on the Moody Radio Network as well as American Family Radio. Visit our website at FaithFi.comwhere you can join the FaithFi Community, and give as we expand our outreach.

Disclosure

Based on a survey of 1,479 respondents who self-identified as committed Christians (defined as having a Christian faith that is important in their life), ages 30+, with a minimum $100K investable assets or $75K household income. 54% of respondents indicate they have a financial advisor. 62% of respondents who have a financial advisor would be willing to change financial advisors in order to get access to investments that align with their values. The survey was conducted by Pinkston, on behalf of Eventide, in October 2023. Third-party sources referenced herein have not been independently verified, nor is Eventide affiliated with any third-parties referenced, unless otherwise noted. Eventide has not independently verified the accuracy or completeness of third-party information. There can be no assurances that the information is accurate or complete. The information is subject to change without notice

Remember, you can call in to ask your questions most days at [phone]. Faith & Finance is also available on the Moody Radio Network and American Family Radio. Visit our website at FaithFi.com where you can join the FaithFi Community and give as we expand our outreach.