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3 Reasons

Millennial Investors Are ImpactInvestors

Beth Braverman

It should be no surprise that millennial investors are poised

to become major adopters of impact investing. From

eschewing cars to putting off marriage, millennials have

always done things a bit differently from their parents. Now

that the oldest millennials, born in the early 1980s, have

grown their personal wealth and are starting to take a more

active role in managing family wealth, they’re making their

mark on the investing space, too.

Having already witnessed multiple cycles of boom and bust,

they’re less likely than previous generations to view

investments as a means of getting rich quick. They tend to be

more cautious—and more thoughtful—about where they put

their money.

All this makes them ideal candidates for bringing the

burgeoning impact investing movement into the mainstream.

According to a 2015 report by the Morgan Stanley Institute

for Sustainable Investing, millennial investors are nearly

twice as likely as others to include socially or

environmentally conscious companies and funds in their

portfolios.

Here are three reasons to expect millennials to become

leaders in impact investing.

1. They’re More Socially and Environmentally Conscious

Than Previous Generations

Since entering adulthood, millennials have shown

themselves to be more interested in the environment and in

social causes than previous generations.

While two-thirds of people polled by Nielsen said that they

would pay more for a sustainable product, that number

jumped to nearly 75% for millennials. Millennials are also

more likely to volunteer or to take a job that pays less if they

feel that they’re making a difference. Now they’re bringing

that awareness—and their willingness to put their money

behind their beliefs—to their investing decisions.

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As millennials grow into leadership roles at �nancial �rms,

they’re advancing the creation of new funds and

organizations with these aims in mind. And millennial

workers in other industries are demanding values-minded

investments options within their 401(k) plans.

2. They Expect Transparency and Are Used to Doing Their

Research

Millennials grew up reading food labels and are used to

researching products before a purchase, so they have no

problem performing due diligence on a company or fund

before investing. Plus, it’s getting easier for them to do so.

Companies typically make their mission statements available

online, and there are several online tools now available that

allow investors to �lter funds based on various ESG

performance metrics.

While more than a quarter of high-net-worth millennials

already own impact investments, another 57% are

interested in adding them, according to a report released by

U.S. Trust. The same study found that the majority of

millennials consider the social, environmental, or political

impact of a fund to be an important factor when making their

investment decisions.

3. They’re about to Have a Lot of Money to Invest

Just as they reach their prime earning years, millennials are

set to receive a collective $30 trillion in assets from their

baby boomer parents in the next few decades, according to

Accenture. Millennials are also likely to take a larger part in

managing family of�ces, putting them in charge of the

direction of family wealth.

As millennial investors come of age, they’re destined to

become leaders in the �nance �eld. As they do, they’ll bring

their generation’s values and habits into the broader

mainstream.

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Ann C. Logue 1 month ago

How Mission-

Aligned

Investments

Helped the

Patricia Kind

Family

Foundation

Expand Its Reach

PKFF uses its assets to help

alleviate poverty through

grants and mission-aligned

investments.

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