Ellis: This was 2006, and what you were seeing was a lot of opportunity but not the structure to take advantage of it for the future?
Scott Trager: Yes, at the time, an impact-consulting associate or sustainable investing role were few and far between. To create this, it really required an entrepreneurial stance to leverage relationships in the industry and build a network and community as well. My early experience at Cambridge Associates led me to a role at Veris Wealth Partners, a boutique wealth management firm completely dedicated to sustainable and impact investing.
At Veris Wealth Partners, I became head of research and due diligence, which really shaped who I am today. I joined Morgan Stanley a little over two years ago following my career ambition to move investing with impact into the mainstream. To empower all investors, regardless of size, to align their investment portfolios with their values and generate positive social and environmental impact. So that’s my path!
Ellis: How many advisors are there at Morgan Stanley?
Scott Trager: As of March 31, 2016, Morgan Stanley Wealth Management has over 15,800 financial advisors and three and a half million client households. This presents an incredible opportunity for investing with impact.
Ellis: How big is the sustainable investment group that you lead within Wealth Management?
Scott Trager: The Investing with Impact platform, which seeks to generate market-rate returns while demonstrating positive environmental and/or social impact, is not a group or business unit unto itself but rather a collaboration across the firm. The platform is integrated across the wealth management value chain and is part of a firm-wide effort to contribute to solving the anticipated extreme resource constraints around food, energy and water that a human population of 9 billion by 2050 will create.
In 2013, James Gorman, our chairman and CEO launched the Institute for Sustainable Investing, which is led by Audrey Choi, with the mission to maximize capital for a sustainable future. From this mission, a mandate was developed to leverage the multiple businesses within Morgan Stanley and innovate new ways of providing access to private capital in order to solve complex social and environmental issues.
Ellis: So the investor and their advisor can utilize the platform as part of their overall investment strategy?
Scott Trager: Yes, the Investing with Impact platform focuses on flexibility and engagement with our clients, allowing both targeted allocations as well as full integration of impact objectives into an investment portfolio. To support this, we continue to develop thought leadership, research and education, as well as diverse internal and third-party investment strategies.
Ellis: Please talk about the products available to Morgan Stanley advisors and clients through the Investing with Impact platform.