“Advisors are leaving an opportunity on the table by not exploring other means of impact investing beyond mutual funds,” Gelfand said.
On average, advisors have discussed impact investing with 41% percent of their clients. The study noted that 66% of next-generation advisors who are less than 40 years of age are personally interested in impact investing, compared to only 52% of advisors over 40 years old.
Advisors need additional education on impact investing, Gelfand said. “Many advisors are versed on the basics but they need a fuller range of approaches” to offer clients.
“Some advisors are still worried about performance of impact investments, even though many studies have shown the returns are as good as other investments,” she added. “Client interest in impact investing is not slowing down. The guidance of an advisor can make the difference between a client’s interest and taking action.”