In focus

Are Hong Kong investors more motivated by morals or money?


Investing is a personal choice and a number of influences will hold sway over where you put your money. Your personal value system is one such influence and, for most people, this appears to be non-negotiable.

Around three-quarters (73%) of Hong Kong investors refuse to compromise on their personal beliefs when investing, even if higher returns were on offer, new research suggests.

These findings are part of the Schroders Global Investor Study 2020, which canvassed the views of more than 23,000 investors from 32 locations around the world, including 500 of them in Hong Kong, between 30 April and 15 June.

Expert investors are more likely to compromise for higher returns

It seems that the more financially knowledgeable the investor, the more likely they are to be willing to forgo their personal values.

Over one third of Hong Kong investors (37%) who rate their investment knowledge as ‘expert/advanced’ are more likely to invest against their beliefs, whereas ‘beginner/rudimentary’ (20%) and ‘intermediate’ (25%) are less likely to pick higher returns if these came at the expense of their personal beliefs.

20201012_hk_eng_chart_1.jpg

Source: Schroders

More investors realising returns don’t have to be sacrificed

Previous studies have revealed that investors are still concerned that they have to sacrifice returns for sustainability.

It’s encouraging to note that this year’s study shows that 40% of Hong Kong investors are attracted to sustainable investments because they believe they’re more likely to offer higher returns.

20201012_hk_eng_chart_2.jpg

Source: Schroders

Hannah Simons, Head of Sustainability Strategy, is encouraged by the results overall. She says: “The results of this year’s survey are clear – returns are not the only influence of investment decisions. People want their values reflected in the way they invest. People are increasingly looking to contribute to a more sustainable society through their investments.

“Sustainability does not have to come at the expense of performance and it is promising to see this manifesting more strongly each year in the data.

“Communication is key if investors are to understand what sustainable investing really means and what this looks like in their portfolios, and this is a core focus for us.”

For more on the Schroders Global Investor Study 2020, please visit www.schroders.com/en/hk/retirement/resources/gis/.

 

Schroders commissioned Raconteur to conduct an independent online study of 23,450 people in 32 locations around the world between 30 April and 15 June 2020. This research defines “people” as those who will be investing at least €10,000 (or the equivalent) in the next 12 months and who have made changes to their investments within the last 10 years.

Important Information
The contents of this document may not be reproduced or distributed in any manner without prior permission.
This document is intended to be for information purposes only and it is not intended as promotional material in any respect nor is it to be construed as any solicitation and offering to buy or sell any investment products. The views and opinions contained herein are those of the author(s), and do not necessarily represent views expressed or reflected in other Schroders communications, strategies or funds. The material is not intended to provide, and should not be relied on for investment advice or recommendation. Any security(ies) mentioned above is for illustrative purpose only, not a recommendation to invest or divest. Opinions stated are valid as of the date of this document and are subject to change without notice. Information herein and information from third party are believed to be reliable, but Schroder Investment Management (Hong Kong) Limited does not warrant its completeness or accuracy.
Investment involves risks. Past performance and any forecasts are not necessarily a guide to future or likely performance. You should remember that the value of investments can go down as well as up and is not guaranteed. You may not get back the full amount invested. Derivatives carry a high degree of risk. Exchange rate changes may cause the value of the overseas investments to rise or fall. If investment returns are not denominated in HKD/USD, US/HK dollar-based investors are exposed to exchange rate fluctuations. Please refer to the relevant offering document including the risk factors for further details.
This material has not been reviewed by the SFC. Issued by Schroder Investment Management (Hong Kong) Limited.