3 Reasons ESG Investing Lags Behind Interest [in ESG].

3 Reasons ESG Investing Lags Behind Interest [in ESG].

"’There are several factors at play to help explain why financial advisors have not wholeheartedly adopted ESG mutual funds and exchange-traded funds (ETFs),’ Brendan Powers, senior analyst at Cerulli, said in a statement.

Survey respondents listed 1). a sense that ESG strategies do not fit into client investment policy statements (26 percent), 2). negative impact on investment performance (24 percent) and 3). cost (19 percent) as the top reasons for the lack of uptake.

Another potential explanation? It might be an instance of ‘old dog, new tricks.′"

[COMMENTARY]I believe that last comment is among the more likely. Furthermore, when scrutinized for their validity, the three reasons advisors gave for not advocating ESG investing are weak, at best, illustrating their disinterest in really knowing their clients and unwillingness to examine the performance of ESG investing products!

Also, another major factor is that most advisors are in the latter phase of their careers with 36% (says Cerulli) planning to retire in the next 10 years.

Rather than not being able to teach an old dog new tricks, it’s really that the old dog doesn’t want to learn new tricks.
3 Reasons ESG Investing Lags Behind Interest, by Jessa Claeys, December 14, 2018, 401K Specialist, USA.

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