MARCH 2017

Jeff Finkelman Discusses Challenges to Standardizing Metrics for Responsible Investing with WSJ Pro Private Equity

Athena Capital Advisors’ Jeff Finkelman discussed the challenges in developing an industry-wide standard for measuring responsible investing in a recent article published by WSJ Pro Private Equity on March 9.

In the article, “Interest in Responsible Investing Rises, But Investors Seek Better Standards,” journalist Laura Kreutzer analyzes the responsible investing outlook among advisors and how advisors expect the market to change, as many firms adapt to the rising interest in these practices, based on findings from a recent survey from Adveq and CAIA.

Standardized measurement, Finkelman told Kreutzer, is one area that could be improved to help investors and their advisors capture their impact and return more successfully, but is difficult to establish because of different priorities among investors and managers. However, he added, a lack of industry-wide standards shouldn’t keep investors from considering the use of a responsible investment approach.

“What is most important is the processes that [managers] are using to track, monitor and measure their impact and the way those processes connect back to their original investment thesis,” Finkelman explained.

The full article can be found here (subscription required).

Jeff Finkelman is a Research Associate, Impact Investments, at Athena, where he concentrates on ESG and impact investing across all asset classes. He joined Athena from the U.S. Small Business Administration, having served as an investment officer within the SBA’s Office of Investment and Innovation.