When it comes to developing and investing in energy, high net-worth investors say, ‘all of the above,’ according to a recent poll conducted by Morgan Stanley Wealth Management.
The firm's Investor Pulse poll finds that twice as many investors favor expanding development of so-called ‘alternative’ energy sources (58%) over traditional sources (29%). These same investors see a mix of traditional and alternative energy sources being the top investment prospects for 2015, including natural gas (76%), solar (61%), petroleum (53%) and wind (52%).
Although the wealthy investor favors development of alternative energy sources over traditional energy sources, a majority wants to see the Keystone Oil Pipeline completed (68%) and supports fracking of shale deposits to develop oil and gas resources (53%).
When it comes to their own portfolios, the high-dollar individuals are bottom-line focused. ‘Rate of return’ is cited by 91% as the top consideration when making an energy investment. However, they say energy independence (72%) and environmental impact (67%) are also significant considerations.
A majority of U.S. high net-worth investors favor completion of the Keystone Pipeline (68%), and this is true across all but one of eight major metropolitan areas surveyed.
As to be expected, energy production centers, such as Denver (73%) and Houston (71%), show the highest support among high net-worth investors for fracking, followed by Atlanta (64%). Although a majority (53%) of respondents supports fracking nationwide, it enjoys only minority support in the New York City tri-state area (48%), Los Angeles (47%), Boston (46%), Chicago (43%) and San Francisco (37%).
Additionally, nearly two-thirds (65%) of high net-worth investors say climate change is having at least some impact on the planet, with 39% perceiving a great deal of impact. And, a substantial majority of 71% says that human activity is a contributing factor to climate change.
Morgan Stanley Wealth Management's semi-annual Investor Pulse Poll surveyed 1,008 high net-worth investors during the fourth quarter of 2014. The financial services firm denotes high net worth as individuals with investable assets of $100,000 or more. A third of survey participants have assets exceeding $1 million, Morgan Stanley notes.