Charlotte, N.C.-based Bank of America (BoA) announced on Tuesday it is enhancing the capabilities of its advisors to meet their clients’ rising interest in impact investing.
BoA says that frontline advisors in its various business lines, including Merrill Lynch Wealth Management, U.S. Trust, and Merrill Edge, are increasingly hearing that clients have impact-oriented goals along with their financial priorities.
The bank reports that a recent U.S. Trust study found that 38% of wealthy individuals have, or are interested in, impact investments; and, that 17% of Merrill Lynch advisors now use five, or more, impact investing solutions with clients.
Amid this growing demand, the bank says that it is enhancing its processes, platforms, and resources, dedicated to impact investing by increasingly incorporating impact investing preferences into its wealth planning tools and portfolio construction processes.
“We’re focused on innovation as we develop our environmental, social and governance (ESG) capabilities, and going right where our clients are taking us,” says Andy Sieg, head of Merrill Lynch Wealth Management, in a statement. “Not so long ago, impact investments were a small part of most goals-based discussions with clients. Today, however, there are more ways for clients to align their values with their investments, and they are proactively seeking information and opportunities during conversations with advisors.”
The bank has also begun discussions with impact data experts about the possibility of building a measurement and reporting framework that would show clients their current exposure to, and progress towards, impact goals.
“As impact investment allocations within portfolios increase, a stronger connection between financial and impact goals will be key to meeting client needs and winning in the marketplace,” adds Keith Banks, head of the global wealth and investment management chief investment office (CIO) and investment solutions group, and president of U.S. Trust.