Ethic and Beacon Pointe Connect with Clients at Scale

Two-thirds of investors see the importance of impact investing, but fewer than one-fourth of investors invest this way. Here’s how Beacon Pointe Advisors leaned in on technology to help more of their clients become a part of the sustainable investment movement.

Outcome No 1

Efficiently and effectively collect data that helps them facilitate conversations with clients and prospects around their values

Outcome No 2

Use that data to customize portfolios for clients while showing their impact

Outcome No 3

Differentiate its wealth management firm from competitors by building more personalized relationships with clients

Impact investing. Environmental, Social, and Governance (ESG) investing. Values-based investing. These terms are popular across both investment firms and the media, but there’s a gap between those who believe responsible investing is important and those who actually align their portfolios with their values. And that gap is pronounced. According to a 2022 NerdWallet survey, while a whopping two-thirds of investors see the importance of impact investing, fewer than one-fourth of investors invest this way. 

Why? It could be because the majority of investors aren’t sure how to invest in their values. With the right tools and platforms in place, wealth advisors can enable their clients to align their values with their portfolios, helping them generate a financial return while playing a role in financing the transition to a more sustainable economy. 

Beacon Pointe Advisors (Beacon Pointe), a wealth advisory firm that serves over 13,000 individuals, families, and institutions, wanted to lean on technology to help their clients become a part of the sustainable investment movement. To do this, they partnered with Ethic.

The Challenge

Every client is unique. Beacon Pointe was hoping to crack the code into understanding their prospects’ and clients' most important values. The firm created a Social Policy Statement, a two-page printed document in which clients simply had to select which categories of companies they believed were most important — examples of categories included companies with comprehensive environmental policies and companies with diverse board leadership. 

But the documents did not reveal clients’ values or show how they could make a personal impact. With limited information on their clients’ goals, wealth managers found it difficult to customize portfolios. And since the Social Policy Statement was just a piece of paper, wealth managers weren’t able to easily digitize the process of collecting metrics that demonstrated to clients the impact their portfolios were making.

The Solution

Beacon Pointe wanted a more robust process for learning about client values — and they needed industry-disrupting technology to help make it happen.

In 2020, Ethic provided Beacon Pointe with their Values Mapping Exercise (VME), an interactive digital tool that allowed clients to express their values more clearly, granting them access to a clear framework for mapping their values and easily sharing that information with their wealth managers. LeEric Daye, principal and senior wealth advisor at Beacon Pointe’s Boston Office, told Ethic that clients enjoyed the active role the VME gave them in decision-making much more than the experience of filling out a piece of paper. He said, “The VME keeps clients engaged.” 

A look at the Values Mapping Exercise (VME). This image is for illustrative purposes only.

The VME also provided much greater detail on clients’ values. Clients could now define their commitments across Ethic’s 19 Sustainability Pillars, a holistic system reflecting the complex issues affecting our world. Issues reflected in these pillars include women’s rights, LGBTQ+ justice, racial justice, climate change, animal rights, and education. 

Using data from the VME and Ethic’s platform, an interactive portal for seeking impact, Beacon Pointe’s wealth managers could propose a customized equity portfolio for each client that aligned with their values. 

Further, Daye said that when clients had questions about specific causes and companies, “Ethic gave us the information, education, and resources to confidently go talk to clients.” Best of all, after choosing their portfolios, Beacon Pointe’s clients could use Ethic’s platform to track the positive impact of their investments.

The Impact

Ethic helped Beacon Pointe efficiently and effectively learn about each client’s values. Instead of asking clients to simply check boxes, Beacon Pointe could use Ethic’s VME to hear directly from clients which causes were most important to them — in a matter of minutes.

Ethic helped Beacon Pointe customize portfolios for clients at scale and show clients their positive impact. Since starting to use the VME and Ethic’s platform, Beacon Pointe’s clients can not only “align their values and their portfolios but are also able to track how much good they've done. They love seeing all the metrics within the portal,” said Melisa Dobraca, a senior associate wealth advisor at Beacon Pointe’s Boston office. 

Ethic helped Beacon Pointe build stronger, more authentic relationships with clients and prospects. “Ethic’s a differentiator,” said Daye, noting how Beacon Pointe’s “clients are excited to go through the VME process because it’s so different from what they’ve seen.” Dobraca agreed:  “The VME was a slam-dunk for us, and it’s helped us grow our business by developing very deep relationships with our clients.”

Ethic Disclosures

This material includes commentary from Beacon Pointe which is a Client of Ethic Inc.  No direct or indirect compensation was provided for Client’s participation in the creation of this material.  There are no known conflicts of interest resulting from Ethic Inc.’s relationship with Client. 

Ethic Inc. is a Registered Investment Adviser located in New York, NY. Registration of an investment adviser does not imply any level of skill or training. Information pertaining to Ethic Inc’s registration or to obtain a copy of Ethic Inc.’s current written disclosure statement discussing Ethic Inc.’s business operations, services and fees is available on the SEC’s Investment Adviser Public Information website – or from Ethic Inc. upon written request at Information provided herein is for informational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Any subsequent, direct communication by Ethic Inc. with a prospective client shall be conducted by a representative of Ethic Inc. that is either registered or qualifies for an exemption or exclusion from registration in the state where a prospective client resides. Information contained herein may be carefully compiled from third-party sources that Ethic Inc. believes to be reliable, but Ethic Inc. cannot guarantee the accuracy of any third-party information.

Ethic Inc. does not render any legal, accounting, or tax advice. Ethic Inc. recommends all investors seek out the services of competent professionals in any of the aforementioned areas.  Ethic Inc. cannot provide any assurances that any investment strategies, simulations, etc. will perform as described in our materials. ALL INVESTMENTS INVOLVE RISK, ARE NOT GUARANTEED, AND MAY LOSE VALUE. BE SURE TO FIRST CONSULT WITH A QUALIFIED FINANCIAL ADVISER AND/OR TAX PROFESSIONAL BEFORE IMPLEMENTING ANY STRATEGY.

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