Paul: Marlo, what are you seeing within the advisor group at WCG related to sustainable investing?
Marlo: We have a couple of younger advisors who understand how the opportunity will make their careers. This approach to investing resonates with their clients and will launch the growth of their practices.
We have others who are more traditional and are taking their time to learn about sustainable investing. I’ve launched new products before, and I know it takes time and consistent performance, whether it’s with clients or advisors. Even so, 40 percent of WCG advisors are learning how to integrate ESG into their businesses.
I think the next phase of growth for the industry will be through advisors who work with and understand the millennial investor mindset. Those who do will keep growing their businesses during the next great money migration.
Paul: Kelly, you work for a firm and on a team that focuses on the excellence of women in business as an opportunity for investors. What’s this like for you as a woman early in your career?
Kelly: It’s exciting to be part of something so unique. It’s not typical in this business to be passionate about mutual funds, but the one Pax World and Ellevate have launched is different. It speaks to me as a woman of my generation, which is driven by personal values. I think funds like this one will increase in popularity because there’s a strong business case for investing in firms with more women in management positions.
Paul: Kathleen, based on your career at Goldman Sachs and now Pax World, what developments do you see five years down the road for sustainable and impact investing?
Kathleen: We see more investors looking holistically at their lives and wanting their financial planning to match that point of view. They want to know what levers can make that happen.
Historically people have separated investing and philanthropy. Today more people want sustainable alignment across these parts of their lives. There’s no reason why they can’t be integrated. And we’re finding that forward-thinking advisors like Marlo want to discuss these things with their clients.
Kelly has also been great in helping us to see that millennials want to buy brands that align with their values.
Paul: Kelly, what can you say to young people interested in a career in financial services? Or those in business school?
Kelly: The sustainable and impact investing industry is exciting and cutting edge. We're working with forward-thinking companies, and I believe this is the future of investing. I think it’s very important to find mentors like Kathleen and Marlo who will advocate for you as you grow in your career.
Marlo: There’s a science to managing money and that part of our business is more of a commodity all the time. At the organic level this business is not technical, it’s built on relationships, and that’s one of the reasons women make such good financial advisors.
In 30+ years as an advisor, I don't think I've had a more personally valuable relationship with a product partner than the one I've built with Kelly and Kathleen. They’re a great resource to any advisor interested in sustainable and impact investing.
Paul Ellis founded Paul Ellis Consulting to work with financial advisors who want to integrate sustainable and impact investment strategies for their clients. Marlo Stil is managing partner and wealth advisor at The Wealth Consulting Group. Kathleen McQuiggan is senior vice president at Pax World Management. Kelly Coyne is vice president of advisor sales at Pax Ellevate.