Awareness and interest in socially responsible investing (
SRI
) are on the rise, but it doesn't mean prospective clients are
pounding on the doors of SRI financial advisors. "You'd think
social investing would constitute a niche all by itself, and that's
true to a certain extent ... but it's both an opportunity and a
challenge at the same time," says Gary Matthews, a New York
City-based CPA and Personal Financial Specialist who works
exclusively with SRI clients. While there aren't as many advisors
who specialize in SRI, there are also far fewer social investors to
market to. SRI advisors also tend to have small practices and be
independent, so they have to work hard to get the word out to
clients, says Matthews, who manages just under $40 million for
about 100 clients. His big advice: "Put yourself on the Internet
where people are most likely to trip over you." A CPA for about 30
years, Matthews began working as an SRI advisor ten years ago after
obtaining a Ph.D. in social ethics from the Union Theological
Seminary in New York. He spent a couple of years with an
established SRI practice before venturing out as a sole
practitioner. He originally landed most of his clients through
Internet-based marketing, though now roughly half come from
referrals. Matthews has been an Investment Advisory Representative
with the First Affirmative Financial Network, which supports a
nationwide network of advisors serving socially conscious clients,
since his early days in SRI. His listings on the Social Investment
Forum, SocialFunds.com, the Calvert Investments Web site, and
nonprofit Green America's National Green Pages have also brought
him a number of clients, he says. Matthews is in the process of
revising his Web site and is considering offering visitors who
provide contact information a free gift, such as a report about
green companies. He's looking at programs offered by MailChimp and
other email marketing services to facilitate a series of follow-up
emails for these visitors. He also shares articles he writes and
has spoken about SRI to church groups. Cross-referral relationships
with other professionals, which provide exposure to a much wider
range of potential clients, have been the biggest strategy embraced
lately by San Diego-based Blue Summit Wealth Management. The firm,
which manages about $75 million for roughly 200 clients, recently
developed a continuing education program for CPAs and tax
preparers. It also has cross-referral relationships with estate
planning attorneys, mortgage brokers, and real estate
professionals. "A little bit of everything is good," says president
and founder Judith Seid, CFP. A few years ago, Blue Summit started
buying blocks of tickets at a local theater a couple of times a
year to distribute to clients and potential clients. The firm
sponsors pre-show mixers with food and advertises in the theater
program. "We've gotten a couple of clients from that," says Seid.
The theater invited Blue Summit to put together a mixer one evening
when four Asian professional organizations (lawyers, accountants
and business people) attended an Asian-themed show. This spring
it'll host a mixer when an African-American women's organization
attends an African-themed show. Blue Summit advisors also
participate in televisions news interviews. "It's not like we get
phone calls because people saw us on TV, but it's a very important
addition to our overall image," says Seid. Her firm has also held
outdoor education hikes, which she says have been a lot of fun.
Krista Strohoffer, who runs Principled Investing LLC in Boulder,
Colo., says she has acquired approximately 20% of her clients
through green events where she's exhibited. "There's so much focus
on spending money to make life green and sustainable but there's
little on investing ... it's a eureka moment for a lot of green
consumers," she says. She also likes participating in panel
discussions that enable small-group participation and has joined a
local leads group that includes one member from every industry.
Strohoffer, whose five-year-old firm has about 60 clients, holds
complimentary initial appointments. "It helps clients identify what
[investment] ready looks like," she says--and sometimes getting
ready takes them a long time. She doesn't mind giving a prospective
client space. "I'm not selling a widget, I'm selling a
relationship," she says. Strohoffer, who doesn't require a minimum
investment, knows that eventually clients may have more money to
invest. "Boulder is a fanatically entrepreneurial community," she
says. Strohoffer has also sent out e-mail blasts to clients and
prospects which have been tied to year-end, spring cleaning and
other seasonal opportunities.
Financial Advisor magazine reaches 90,000 financial planners and
investment advisors through its print publication and its
Web site
. It also publishes
FA green
, for advisors interested in socially responsible investing, and
Private
Wealth
, for advisors targeting the ultra high-net-worth market.