3. Don’t Fear The Issues
Advisors don’t have to be experts on every social issue, but they should lead with those they are passionate about and show a willingness to engage with clients about their ideas as well. This alone will demonstrate a commitment to take seriously the idea that investments can be successfully tuned to social preferences.
It also means advisors need to be open and ready to explore issues that clients want to invest in. Climate change is an excellent example, as it’s top of mind for much of the world and a point of political contention in the United States. Clients who are passionate about the issue may look to advisors for guidance on how to participate. Knowing the heart of the issue and the most relevant investments will allow advisors to alleviate concerns and forge greater trust in their ability to support an area their clients are passionate about.
If topics arise that fall outside an advisor’s knowledge base, there is no need to panic: they can simply agree to explore the opportunities. That type of partnership is what makes clients feel secure in the relationship for the long term.
Clear Communication Means A Clear Path
We make decisions based on our values every day, often without even realizing it. What activities are right for my children? Which type of cereal should I buy? What kind of car do I drive? All of our choices are intuitively informed by emotional and rational drivers, and they empower us to shape the world we live in both on a community level and on the world stage.
Investing should be no different, and it is inevitable that the financial services universe will begin to treat sustainable investing as an inherent part of decision making. Advisors serve as the trusted gatekeepers for precious capital, and it falls on them to sort through the nuances and clearly communicate the options to their clients.
In the end, opening that conversation will lead to thoughtful portfolios and stronger relationships.
Evan Zall is president of Longview Strategies, a strategic marketing and communications firm with a focus on financial services and expertise in sustainable investing.