A 2018 report from the U.S. Forum for Sustainable and Responsible Investment found that, in the U.S. today, $12 trillion in client assets are held in socially responsible investing (SRI) offerings—a 38-percent increase over the $8.7 trillion in 2016. The study also says that $46.6 trillion in total assets are under professional management nationally. What does this mean? One in four managed dollars in the U.S. has a sustainable, responsible, or impact focus.

Have you made the choice to outsource investment management? If so, you are well aware that the number of managers and strategies being used can expand to the point where ongoing due diligence is a challenge. Plus, different investment instruments may require various levels of attention. For example, a separately managed account (SMA)—which we will focus on here—does not have a prospectus and qualifies for more frequent monitoring.