What You Need to Know
- Sixty-one percent of survey participants use ESG products, including 67% of advisors under 40 and 71% of female advisors.
- Wirehouse advisors are the most likely to use ESG products.
- Sixty-two percent of financial advisors use SMAs, including 70% of advisors under 40.
A majority of financial advisors, citing direct interest from investors, use products focused on environmental, social and governance criteria, according to a survey released Monday by Broadridge Financial Solutions.
The survey also shows how the advisor-wholesaler relationship is evolving in the post-pandemic environment.
Sixty-one percent of survey participants use ESG products, including 67% of advisors under 40 and 71% of female advisors.
And 4 in 5 advisors who use ESG products say they plan to increase their usage over the next two years as investors actively seek out these products.
The results showed that wirehouse advisors are the likeliest of all channels to use ESG products and to say both inclusion on their broker-dealer platform and promotion by their home offices are their reasons for doing so.
The survey also found that 62% of financial advisors use separately managed accounts, with that number rising to 70% among advisors under 40. Fifty-six percent of advisors who use SMAs plan to increase their usage over the next two years.
As advisors explore new investment vehicles, half of advisors are also using private funds, according to the survey. Eighty-one percent of respondents who said they use private funds also use SMAs.
“Now more than ever, investors are speaking up about the types of products they want to invest in, whether it be ESG, private markets or other emerging asset classes,” Matthew Schiffman, principal of distribution insight at Broadridge, said in a statement.