Are you ready for the Great Wealth Transfer?
The Great Wealth Transfer has arrived. Over the course of this decade, baby boomers are set to pass to their children more than $68 trillion, the biggest wealth transfer ever. In this generational transition, we are seeing a remarkable change in attitudes towards wealth and an increased desire to use it to create social and environmental impact. Barclays, Campden Wealth and GIST Initiatives have just released their study, "Investing for Global Impact, A Power for Good, 2022", based on a survey of ultra high net worth families and their family offices, which provides useful insights. Many advisors and wealth managers are not able to provide the advice and support their clients need.
I know you are super busy so I've picked out some of the report highlights;
1. Impact Investing has arrived
It's not 10 years down the line but there is strong demand from clients now.
37% of respondents are active in impact, with multiple investments across different asset classes or causes
21% consider impact investing to be their primary portfolio approach
2. Impact Investors are satisfied with their returns
It's not just about concessional investing.
For 80% of respondents, 2021 financial returns on impact investments met or exceeded expectations.
Five years from now, respondents also expect their impact investments to either outperform (37%) or generate financial returns at the same level as (44%) traditional investments.
3. Impact investing & philanthropy can bring generations together
Respondents believe that involving the next generation in philanthropy (83%) and impact investment (80%) will prepare them to take on greater family responsibility.
Over half of respondents (53%) think that impact investing is creating a bridge between older and younger generations.
4. Families are seeking better impact & philanthropic advice
Few wealth managers are well placed to offer expertise and advise to their clients.
37% of respondents think more impact-specific expertise is needed by wealth advisers. Only 11% said no improvements are needed.
Key areas for improvement include impact measurement and reporting (60%), more impact-specific investment strategies (40%), and better due diligence (40%).
Finally, don't take my word. Read the full report.
But there are 70 other equally revealing charts in the study, along with case studies and analysis, all creating a compelling rationale for wealth managers to devote more resources to impact investing and philanthropy when dealing with their clients. The study is available at: https://lnkd.in/earz96WR
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