SRI investing continues to grow in leaps and bounds. However, most financial advisors have been "dragging their feet" in joining the party.
Why?
As Lisa Woll, CEO US SIF, wrote in "Outlook on Sustainable, Responsible and Impact Investing for Advisors, it's primarily due to a few misconceptions."
Woll identified three primary questions or areas of concern for advisors:
- Lack of knowledge about relative financial performance
- Confusion about how to best integrate SRI into a client's portfolio
- Outdated notions of fiduciary duty
With the increasing investor demands for ESG considerations, and the DOL's assurances that SRI investments will not be treated as inherently suspect, Woll believes moving forward advisors will begin to embrace SRI investments. You can find the full outlook here, where it appeared in WealthManagement.com's 2017 Mid-Year Outlook.