Getting With The Program
“There are a lot of advisors out there who think that investing with an environmental, social and governance agenda in mind is a waste of time or will result in below-market returns. The research we’ve seen and the work we’ve done in constructing portfolios that track standard index benchmarks indicate that’s not necessarily the case,” said Solli. “Even if it were the case, there are enough very high-net-worth investors out there who care about these issues. Some high-net-worth advisors may not be into it, but it’s a business imperative that they be ready to address them and engage with their clients on them.”
Research published by Bank of America earlier this year reinforces the notion that advisors must heed their clients’ desire for impact investing options. Among the findings: 45 percent of high-net-worth investors surveyed agree that their investment decisions are a way to express their social, political and environmental values; six in 10 feel they can influence society through the companies and projects they invest in; and 29 percent say the ability to provide values-based investment choices is an important consideration in selecting a wealth-management firm
According to Imprint’s Jordan, advisors to wealthy individuals, families and foundations should work to find investments that match their clients’ financial criteria and impact objectives. “It takes some additional effort but there’s a growing ecosystem to support them and help them move their clients into this space. This is here to stay. Clients want to have more meaning with their money,” he said.