Last week, while guest-hosting on behalf of Jeremy Schwartz, I had the pleasure of speaking with DeAnne Steele, Head of National Portfolio Management and Consultancy Practice with U.S. Trust. She brought a wealth of both experience and passion to the concepts of impact investing and looking at making investments with sensitivity to the gender lens.
The critical theme: clients want to do good while also doing well. Some highlights that Steele brought to light include:
On Impact Investing Broadly:
• Assets under management related to sustainable, responsible and impact investing (SRI) rose from $6.57 trillion at the start of 2014 to $8.72 trillion at the start of 2016, a growth rate of 33% over that two-year period and a total that represents about one-fifth of all professionally managed U.S. investments.1
• Wealthy investors believe that they make an impact in a variety of ways, as studies have shown that 74% give financially to nonprofit organizations, 69% volunteer their time, skills or service, 27% serve on the board of a nonprofit organization or foundation, 17% invest in companies that support positive social and environmental policies and practices, 14% own a company that creates jobs and opportunities for others, 13% work for a nonprofit organization, and 7% engage in social entrepreneurship (i.e., own a company to provide social or environmental solutions).2
• Advisors are also cognizant of how impact investing can help bridge the generational divide and build connections with millennial investors.
• Steele emphasized that a factor that could contribute to the ultimate success of these types of investment approaches is how it further aligns the thoughts and feelings of clients with the success of their portfolios. The depth of the client relationship and an understanding of their values was of the utmost importance.
On Investing through the Gender Lens:
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