Gen Z and Millennials prioritize portfolio values alignment significantly more than Gen X and Baby Boomers doDo you consider the environmental and social impact of a product or company before you invest in it? Investor respondents Millennials Gen X Baby BoomersGen ZAlmost never Rarely Sometimes Fairly often Almost always5% 6% 10% 14% 21% 18% 24% 25% 18% 21% 28% 33% 42% 40% 30% 21% 13% 15% 8% 6%In the past 40 years, the social and environmental impact of investments has become a significant consideration. Many investors are curious about incorporating environmental, social and governance (ESG) factors into their investment decisions. ESG considerations generally include pollution, natural resources, human capital, product liability, stakeholder opposition, corporate governance and corporate behaviours.10 Growing interest in values-based investing –In total, 66% of Gen Z and 70% of Millennial investors stated that it was an important factor for a financial institution to be aligned with personal beliefs and values. –ESG-focused mutual and exchange-traded funds attracted an estimated $10.4 billion in new investor assets during Q3 2024.11Challenges in values-based investing –Several anti-ESG policies in the US have created a more complex environment for values-based investing.12 –Limited access to reliable and consistent ESG data remains a challenge when it comes to investments in smaller companies or emerging markets. –Investor uncertainty can arise from unclear or ambiguous ESG distinctions, such as with traditional energy companies transitioning to clean energy. –Wealth managers need to systematically find a challenging balance between portfolio returns and fiduciary responsibilities around investor ESG expectations. Recent sector shake-up –In Europe, 74 sustainable funds were closed or merged in Q3 2024, contributing to a total of 250 closures and mergers from Q1 to Q3. On top of this, 113 funds dropped ESG terms in 2024. In the US, 12 sustainable funds were liquidated in Q3 2024.13 2024 Global Retail Investor Outlook 23

2024 Global Retail Investor Outlook 2025