Financial Advisors Lag Behind Clients on Impact Investing
By Abby Schultz
More investors in the U.S. want to generate positive social or environmental impacts, as well as financial returns, with their assets, but a study out Wednesday morning by Fidelity Charitable shows that financial advisors haven’t caught up with their client’s wishes.
The Fidelity Charitable survey of 175 financial advisors found only 41% have talked with their clients about impact investing—a missed opportunity, given that 60% of investors surveyed by Fidelity Charitable last year said they had already made an impact investment. Moreover, more than 70% of affluent millennials and Gen-Xers have invested for impact.
While knowledge of impact investing by advisors appears to lag behind their clients, Sarah Gelfand, vice president for social impact programs at Fidelity Charitable, still is encouraged that just over half of the advisors surveyed know what impact investing is. Moreover, 62% of advisors surveyed who have more than $100 million under management believe they know the topic well.
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