Demand for sustainable investing may be relatively weak right now among wealthy investors in the United States, but that’s expected to change for the next generation of clients, suggests a report from London, U.K.-based research firm GlobalData PLC.
According to firm’s 2018 global wealth managers survey, the current level of demand for socially responsible investmenting (RI) from high net worth investors (HNWIs) is “moderate at best” in the U.S.
However, GlobalData sees this changing in the years ahead.
Specifically, 53.4% of U.S. wealth managers surveyed believe that RI is “more important to the next generation than the current generation of clients,” GlobalData says in a news release.
“Although sustainable investing may not currently be the biggest money-maker, 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 and will be key for the next generation,” says Sergel Woldemichael, wealth management analyst at GlobalData, in a statement.
“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. Wealth managers need to adopt or expand their sustainable investments, as demand for these products will only grow,” he adds.