Over the weekend I read an excellent Issue Brief by ImpactAssets entitled “The Millennial Perspective” I thought I would highlight some of the key findings below. You can find it in its entirety here.
A Unique Worldview
The NextGen worldview has numerous implications, but one place it is clearly at play is in financial markets, where their perspective is already influencing the way they put assets to work. Millennials are demanding more integration of their money and values by seeking personal fulfillment in their careers, applying a global consciousness to their purchases and investing in sustainable, impactful business models.
Millennials are the first generation to be truly global, sharing experiences across cultures and geography, connected by technology more than any generation before them. Millennials also have heightened awareness of the many inequalities in the world today, through news media, social media and travel in an increasingly globalized world. The evolving interconnectedness across cultures around the world has contributed to increased knowledge, curiosity and sense of responsibility towards the global community. An understanding of Millennials creates an opportunity to partner with them as they develop into responsible stewards and change makers of the future.
Wealth Transfer to the Millennial Generation
As part of the demographic transition, a tremendous shift of financial and generational influence is also coming. Over the next several decades, it is estimated that $30 trillion (1) in financial and non-financial assets will pass from Baby Boomers to their heirs in North America alone. Millennials consider social responsibility to be a major factor in evaluating investments, far more than previous generations, and have a keen interest in impact investing. Advisors, however, have been slow to immerse themselves in really understanding the landscape of investments that provide both social and financial return. Advisors at Morgan Stanley are fortunate to have the Investing with Impact platform to help vette investment selection and also have the Institute for Sustainable Investing to provide thought leadership in these areas.
The writing is on the wall, we have the tools to educate ourselves and our clients and be in a leader to the next generation of investors. I suggest we rise to the challenge.
- The “Greater” Wealth Transfer: Capitalizing on the Intergenerational Shift in Wealth, Accenture, June 2012, p.1
The Millennial Perspective: Understanding Preferences of the New Asset Owners
Authored by Lindsay Norcott, Strategic Initiatives Officer and Jed Emerson, Chief Impact Strategist