Sustainable Investing with Sonia LeRoy
Clients are looking to not only grow their portfolios but also help shape the world by contributing to positive change. The key to making both of these happen is sustainable investing.
I recently had a great conversation on the ‘why’ of sustainable investing, with one of IPC’s very own, Sonia LeRoy, Senior Wealth Advisor. Sonia has a very unique approach to the Canadian investment landscape - placing a strong emphasis on responsible investing within business and works to educate and better support her clients with this philosophy. In our chat, we discuss how sustainable investing can be a powerful way to build stronger relationships with your clients as well as the key role it plays in portfolio growth.
Sonia provides solutions to investors - affluent Canadians, to help them meet their complex and challenging financial objectives. With over 30 years of investment and advanced financial experience, Sonia and her team provide innovative financial solutions. Knowing that each family’s situation and objectives are unique, she looks to provide tailored advice to fit each client, whether that be; customized tax minimization, investment optimization, or succession planning strategies. Sonia holds both a Certified Financial Planner (CFP®) and Registered Financial Planner (RFP) and is a long-time member of the Financial Planning Standards Council of Canada and the Responsible Investment Association (RIA). As an RIA member, she places emphasis on and incorporates socially responsible investing strategies into LeRoy Wealth Management Group. Sonia has won the WP Advisor of the Year Award for Responsible Investments twice, most recently in 2022.
SO, WHAT IS SUSTAINABLE INVESTING?
Sustainable investing, or often referred to as ‘ESG’ (environmental, social and governance investing) is a way for clients to influence their investments to behave as better corporate citizens. It allows client’s core values and views of the world to be integrated into their investment choices. Clients can use the power of their portfolio to influence the direction they want to see the world go in.
Sustainable investing is widely misunderstood because it can mean so many different things to so many different people. Think of the different levels of ESG on a spectrum. From being an excellent non-financial tool to asset risk to screening out unethical companies or problematic industries.
Sonia also calls it ‘responsible investing’. Her goal is to help investors figure out what’s important to them and then deliver a solution that aligns their money with their version of responsible investing.
SUSTAINABLE INVESTING CREATES MORE INTIMATE CONVERSATIONS WITH CLIENTS
“You can use the power of your money to influence the direction of these issues. When people realize that, they get excited!” - Sonia LeRoy
Sustainable investing starts with in-depth client conversations. The type of questions you ask can lead to a much more personal and intimate conversation:
- “Do you consider yourself to be a responsible consumer?”
- “Have you thought about what it means to be a responsible investor?”
- “If you could integrate your personal values into your investment strategy, would that be interesting to you?”
Your clients might not have been asked questions like this before, and they will appreciate it!
These client conversations dive straight into a discussion about people’s core, fundamental values. What is important about their money or the world to them? What are their hopes and dreams for the kids? (It could be their kids, the environment, social justice, so many topics.) They can use the power of their money to influence the direction of the issues that are important to them. Whether it’s the environment, social fairness, fair trade or global social justice to name a few. This can get a client excited!
Any of Sonia’s new clients come from referrals from other clients that are all responsible investing clients. When you have these conversations with your clients, it leads to other people with common philosophies. They’re already coming to her ready with thoughts of wanting to align their money with their values.
SUSTAINABLE INVESTING IS THE WAY OF THE FUTURE
“I think it can actually improve the risk-reward trade off for investors. Evidence is growing that companies who perform on an ESG basis actually experience fewer risk events and can even be more likely to be profitable over time.”
According to the Responsible Investment Association Trends Report for 2022, they estimate that there’s $3 trillion assets under management in Canada that are invested with some form of ESG or sustainable and responsible investing criteria.
Sonia believes responsible investing is the way of the future. It’s been around for awhile, but it’s easier to do it now, more effectively, without a trade off, no need to give up rate of return or take on extra risk. In fact, Sonia believes it can actually improve the risk/reward trade off for investors.
Money is power and with power
comes responsibility. If you want to connect with your clients on a deeper level, you should be including ESG or responsible investing into your conversations. Clients are looking for more alternatives or unique strategies like this with their portfolio today. To be able to support your clients, help them find ways to connect their money and values is a rewarding task. In addition, including ESG into the conversation will help you to deepen your relationships and better understand your clients. Sonia feels so privileged to be involved in those conversations, and they’re easier to have than you think - especially with the right questions and resources.
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I’d love to talk to you more about sustainable investing! Are you having these conversations with your clients? Why not have a virtual coffee with me? I’d love to chat with you more about it and how you can accomplish big things in your business in 2023!
Set up a virtual coffee with me here: https://aspect.ipcc.ca/turning-the-page-podcast#grabcoffeewithchris
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Let’s talk soon!
Chris
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