Financial advisors believe they can grow their practices through sustainable and impact investments, and are prepared to commit assets to take advantage of the opportunity.
The Calvert Foundation, which makes loans below market rates to community organizations, reported earlier this month that most respondents in its Gateways to Impact study were willing to recommend sustainable investments to about a third of their clients and would allocate between 10% and 20% of those portfolios to the products.
This means that on average, U.S. advisors are willing to place 2.5% of their total assets under management in sustainable investments for a market potential of $650 billion, Calvert said in a statement.
“People want to align their money with their values, and there is growing recognition on behalf of financial advisors that they need sustainable and impact investment products to offer their clients,” Lisa Hall (left), the foundation’s president and CEO and a project manager for the research, said in the statement.
“This report shows that the firms that succeed in this market will be first to give their advisors the tools and education they need to effectively advise their clients on sustainable investment opportunities.”
Deutsche Bank, the Rockefeller Foundation and Envestnet were among the sponsors of the study.