Next gen to have a better conscience than their predecessors

image
image
expand image

Appetite for sustainable investing in the US is moderate at best, but analysts from GlobalData say that, like robo-advice, the offering is ahead of its time and will be key for the next generation.

According to GlobalData’s 2018 Global Wealth Managers Survey, although 90 per cent of US providers interviewed had socially responsible investments in their high net-worth proposition, the demand for those products was moderate at best, sitting at 50.1 per cent (where zero per cent was very weak and 100 per cent was very strong).

A UBS report looked at high net-worth investors with at least one per cent of liquid assets allocated to investments with environment, social and governance factors, and only 12 per cent of high net worth individuals in the US had some sustainable investments in their portfolios.

Sergel Woldemichael, a wealth management analyst at GlobalData, said despite the weak appetite, providers shouldn’t omit sustainable investments in their proposition, as they’ll be key for the next generation.

“As the generational wealth transfer approaches, wealth managers will need to ensure the next generation’s needs are met sooner rather than later, as heirs are likely to start influencing their parents’ investment decision even before the actual wealth transfer,” he said.

“Wealth managers need to adopt or expand their sustainable investments, as demand for these products will only grow.”

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

GG

So shareholders lose a dividend plus have seen the erosion of value. Qantas decides to clawback remuneration from Alan ...

2 months 1 week ago
Denise Baker

This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping ...

2 months 1 week ago
gonski

So the Hayne Royal Commission has left us with this. What a sad day for the financial planning industry. Clearly most ...

2 months 1 week ago

A Sydney-based financial adviser has been banned from providing financial services in the interest of consumer protection after failing to act on conduct concerns. ...

3 weeks 3 days ago

ASIC has cancelled the AFSL of a $250 million Sydney fund manager, one of two AFSL cancellations announced by the corporate regulator....

3 weeks 1 day ago

Having divested its advice business in August, AMP is undergoing restructuring in at least four other departments amid a cost simplification program....

2 weeks 5 days ago