Societal issues remain at the fore of the American mindset right now. And when emotions reach the heights that they have, it becomes common — and risky — to conflate issues that are similar but not the same. In that vein, I want to address a topic that I consider enormously important for understanding the future of the industry: ESG is not diversity. ESG is an investment strategy. Period.
Rather than making investment decisions using metrics like price-to-earnings ratios or Bollinger Bands, they’re based on policies and practices that meet a set of environmental, societal and governance expectations. But the ultimate goal of ESG is to deliver investment returns.
Diversity is far more important. Diversity means complete representation throughout a community. For the financial advice community, achieving diversity represents its future.
It’s well documented that there is a gap in access and use of financial advice and planning between different communities. If you believe, as I do, that financial advice and planning provide real benefits, then you should pursue diversity to make this essential service available to all communities.
To me, that difference is why we must never conflate ESG and diversity.
Plus, a $400 million Commonwealth team departs to launch an independent family-run RIA in the East Bay area.
“I respectfully request that all recruiters for other BDs discontinue their efforts to contact me," writes Thomas Bartholomew.
The collaboration will focus initially on strategies within collective investment trusts in DC plans, with plans to expand to other retirement-focused private investment solutions.
Wealth tech veteran Aaron Klein speaks out against the "misery" of client meetings, why advisors' communication skills don't always help, and AI's potential to make bad meetings "100 times better."
The proposed $120 million settlement would close the book on a legal challenge alleging the Wall Street banks failed to disclose crucial conflicts of interest to investors.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
