Standard Life Investments Highlights the Impact of Millennials on Values Based Investing
20 October 2015
Global investment manager, Standard Life Investments has issued a White Paper examining the rise of the millennials and their impact on values-based investing. It explores millennials' potential impact on traditional financial management, as well as the many opportunities they create for the industry.
The report highlights that millennials want to invest in companies that achieve positive social outcomes and new products will need to be created that reflect their attitudes and beliefs. For example, impact investing has grown in prominence in recent years, driven primarily by millennials looking for investment vehicles that make a difference to the world. At present impact investing remains on the fringes of the asset management world but this looks set to change as an increasing number of millennials start investing.
In addition, a recent Standard Life Investments YouGov poll on values based investing showed a strong link between age and values. The younger groups surveyed (those between 18 and 24), who were investors, having the strongest inclination towards investing in companies that achieve positive environmental and social outcomes*. This trend decreases with age. The survey also found that:
- Nearly half (48%) of respondents* affiliate with some form of principles led investment
- Nearly half (45%) of investors* feel strongly about the environment
- 63% of respondents* think values based investing delivers the same or better financial returns
- 47% of respondents* have boycotted a company or brand because they disagree with the ethics of their behaviour
- Only 27%* have no ethical concerns that would impact investment decisions
Amanda Young, Head of Responsible Investment, Standard Life Investments said:
“For the investment industry, the need to be as transparent and accessible as possible will be a key driver in building trust with millennials. Products will also have to reflect their beliefs and priorities. As such, the investment industry will need to consider and develop innovative ways to invest that reflect these changing attitudes. Of course, returns will remain important. However, millennials are increasingly demanding investment solutions that ensure their money also has a positive environmental and social impact. These factors will create challenges and sizeable opportunities for the investment management industry.”
The white paper and YouGov poll coincide with Good Money Week. Standard Life Investments is an official sponsor of Good Money Week. The UK wide initiative runs from 18th to 24th October and is an opportunity for investors to ensure those they trust with their money are looking after it well and using it in ways that benefit society and protect the environment.
* all figures exclude those who responded 'don’t know'. Millennials are defined as those aged 18 to 24, also known as Gen Y