Although the idea of socially responsible ETFs that focus on environmental, social and governance (ESG) is not relatively new, it’s still struggling to break into the investment mainstream, particularly in the fixed-income space. This is exactly what the next generation of financial advisors are clamoring for according to a survey by Incapital LLC, a leading underwriter and distributor of fixed income securities.
Among financial advisors with three to nine years of experience, 99 percent of those using individual bonds discussed the topic of social impact and ESG goals with their clients. This represents a 25 percent increase compared to advisors with over 10 years of industry experience.
“This generation has had more access to information on social impact investing than any before them, so it is no surprise that millennials and the generation of advisors that serve them, are like-minded in their support of results-driven causes,” said Louise M. Herrle, Managing Director and Head of Incapital’s Legacy™ platform for distributing social impact investments. “They understand that they can achieve their clients’ financial goals with investments that reflect their personal values.”
In the video below, Eric Glass, Muni Impact Fund portfolio manager at AB, discusses the goals of his fund’s approach to impact investing in municipal bonds. He speaks with Bloomberg’s Taylor Riggs in this week’s “Muni Moment” on “Bloomberg Markets.”
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