Access in-depth special reports dedicated to key trends and developments affecting Private Banking & Wealth Management globally. All reports are editorially independent and designed to provide unique insight.
Company & Market profiles, Exclusive interviews, Opinion pieces and AUM rankings can be found exclusively for Subscribers.
View Special Reports
Exclusive data compiled by our expert analysts on major trends in the sector.
Read the latest subscriber edition, as well as our archives, including in-depth features, comments, exclusive research and guest articles.
View Subscriber Editions
The latest hires and moves in the sector.
View People Moves
Every month, FinTrack will showcase the latest innovations from financial providers around the world. Each innovation is assessed and rated on key criteria, to assist with identifying, tracking & understanding key innovation globally.
Next-gen HNWIs in the US will boost demand for sustainable investing
US millionaires have the lowest adoption rate of sustainable investments, according to a study published by UBS in September 2018. This may be true for now, but the next generation of HNW individuals will change this.
The results of the study remain in line with findings from the 2018 Global Wealth Managers Survey. Although 90% of US providers we interviewed have socially responsible investments in their HNW proposition, the demand they experience for such products is moderate at best. On a 0% (very weak) to 100% (very strong) scale, sustainable investments stand at 50.1%. This is the lowest level of any service in the US wealth management market – and it is forecast to increase only slightly over the next year.
Although sustainable investing may not currently be the biggest asset class, that does not mean providers should omit it in their proposition. Parallels can be drawn with robo-advice: both offerings are ahead of their time, but will be key for the next generation. Indeed, the majority of US wealth managers surveyed by GlobalData believe socially responsible investments are more important to the next generation than the current generation of clients. Research shows that millennials are committed to their money having more of a social impact than their elders, and wealth managers’ views echo this.
As generational wealth transfer approaches, wealth managers will need to ensure the next generation’s needs are met sooner rather than later. And heirs are likely to start influencing their parents’ investment decision even before the actual wealth transfer. Wealth managers need to adopt or expand their sustainable investments, as demand for these products will only grow.