ESG (environmental, social and governance) and SRI (socially-responsible investing) investments are terrific ways to help clients align personal values with investments. Women and younger investors, both beneficiaries from a transfer of wealth, are driving strong demand and the number of ESG/SRI investment managers has ballooned in size over the past decade. Those seeking ESG/SRI options now have a plethora of providers to choose from, which makes the process of vetting money managers that much more important.
Envestnet VP of Impact Investing, Brett Wayman and Doug Classen, SVP of Dana Investment Advisors discuss how to research ESG/SRI managers, how to talk with current clients about ESG, and how RIAs can find new clients. Hint: have you reached out to the small institutions in your own backyard?
Watch this video to learn more.
The universe of acceptable investments for ESG funds may be limited as compared to other funds due to their ESG investment screening. Because ESG funds do not invest in companies that do not meet their ESG criteria, and the funds may sell portfolio companies that subsequently violate their screens, the funds may be riskier than other mutual funds that invest in a broader array of securities.
