Invest | Investment funds are courting the “new generation”

Concerned about the impact of an aging population on the financial asset management market, investment fund players are stepping up their efforts to engage the “new generation” of adults at the beginning of their lives as investors.

Published at 8:00

Martin Valier

Martin Valier
Press

However, the best way to attract and retain this new clientele remains difficult to identify and manage, said the participants in the annual conference of the Conseil des fonds d’investissement du Québec (CFIQ), which took place on Tuesday at a web conference. .

“To approach this new generation of investors as advisers, it’s important to have a good conversation about risk and return, but not necessarily to manage their entire portfolio as it was before,” said Eric Halle, Eastern Canada’s regional vice president. Dynamic Funds. Mr. Halle is also president of the CFIQ.

“Investors are more informed than before and have access to information [de marchés d’investissement] up to a minute thanks to mobile technologies. Everything is moving faster, especially among young people, which makes it difficult for investment advisers to attract and grow this new clientele of investors, ”said Brigitte Felx, senior director of distribution strategy in Quebec at RBC Global Asset Management. «Assets.

Independent investors

More technically savvy than their older, young people entering the market for investment products and services are also more attractive as independent investors and more likely to use financial technology.

“This greater interest of the new generation in independent investment has been evident over the last two years of the pandemic,” said Claude-Frederick Robert, president of Banque Nationale Courtage direct (BNCD).

In fact, many accounts have been opened [par les jeunes adultes] over the past two years, we have reduced the average age of our account holders by 10 years.

Claude-Frederick Robert

As for the investment products that most attract this new generation of investors, the participants of the CFIQ symposium wanted to correct some of the impressions circulating among investment fund advisers.

Despite their interest and ability to own technology in the financial sector, recent research shows that next-generation investors use “human advice” much more than those who mostly use “workers”, said the president of BNCD. .

In addition, said Louis Roy, national director of certification in blockchain technology (the technology behind cryptocurrencies) of consulting firm Raymond Chabot Grant Thornton (RCGT), “capture platforms for rapid creation and valuation of digital assets such as cryptocurrencies. which are still very poorly regulated are a great challenge for these young independent investors. ”

Hence, it is important to emphasize for them the “relevance and added value of human advice” in financial asset management, especially “in times of turmoil similar to what we see in today’s markets,” said Claude-Frederick Robert, president of the National Bank’s direct brokerage.