Invest
Strategic philanthropy brings investing a ‘higher level of meaning’: State Street
Invest
Strategic philanthropy brings investing a ‘higher level of meaning’: State Street
Strategic philanthropy is not only the “modernisation of giving back”, it’s also a natural extension of value-based investing, State Street Global Advisors has said.
Strategic philanthropy brings investing a ‘higher level of meaning’: State Street
Strategic philanthropy is not only the “modernisation of giving back”, it’s also a natural extension of value-based investing, State Street Global Advisors has said.
The definition of strategic philanthropy has shifted away from “significantly-sized” cheques written out by wealthy benefactors and towards value-based investors, the vice president of State Street Global Advisors, Brie Williams, told Nest Egg.
“With a values-based approach, it’s possible that it’s both [investing and philanthropy],” she said.
Investors are looking to connect their personal values with their financial goals, which in turn brings the investing experience a “higher level of meaning”.
“They don't have to choose between the two. It's not a sacrifice of returns in order to find a way to contribute. Think about it as casting a dollar vote on the change you wish to see in the world,” Ms Williams said.
She said strategic philanthropy is growing more popular among younger investors, with 72 per cent of Millennials (generally considered to be aged between 22 and 37) looking for financial advisers who factor in their strategic vision.
“They are really showing all of us, including the financial advisers they're working with, that this is a gift with direction that is good for their portfolio, but also good for whatever their interests are,” Ms Williams said.
Across all age cohorts, the decision to invest like this comes down to personal satisfaction and prudential wealth management.
Women are particularly interested in this strategy, she noted, pointing to the fact women are nearly twice as likely to consider both the rate of return and positive return when making an investment.
“We do see, and I'm not saying this to be stereotypical, but just based on behaviours, they are more altruistic and empathetic, but that's not just a matter of generosity. That is their growing interest in making an impact, a difference, but also taking on a leadership role in this space because they have really come into their own when you think about their economic power and financial influence,” Ms Williams said.
“So they're pushing some of the conventional approaches to investing in philanthropy in some really new directions, which is exciting.”
Responding to questioning around women’s tendency to have a lower risk appetite and whether there was a link, Ms Williams said she thinks interest in strategic philanthropy and impact investing is more closely tied to women’s preference for value-based approaches.
“Strategic philanthropy and some of the vehicle choices behind that for the portfolio can be more inclusive and strategic, providing a sharper focus on how they give and the type of impact they want to make,” she explained.
“It's an opportunity to search for and identify with the financial adviser a deeper sustainable solution that really takes into account the life priorities they have and it gets them more traction and bandwidth as a result.”
However, all investors have benefited from technology enhancements boosting transparency and more rapid product development increasing efficiencies.
Nevertheless, investors can still be stumped when it comes to devising their strategy, Ms Williams added.
Investors need to understand what is driving their unique feelings as well as their financial needs.
“It's not that people don't want to give or they don't give, they do, but they rarely have a plan, so giving isn't often as impactful as it could be. So people are looking for that guidance to give well,” Ms Williams said.
She said investors increasingly understand the role of a financial partner or adviser in this and this is extending across generations.
“When you have a financial partner, a financial adviser working with the family or an individual and helping educate them on values of where that dollar can cast a vote and make a change in a cause that's important to them, whether that's gender diversity, environment, religion, it creates a deeper level of relationship and really brings forward the heart of wealth management,” Ms Williams said.
“So there's wonderful relationship continuity within the family when you think about how you connect the generations, but also with the financial advisory practice, who's looking to connect with that next generation.”
Property
Millennials believe first home buyers need more support
Australia’s up-and-comers in the housing market say more needs to be done to slow rising house prices. ...Read more
Property
3 in 4 borrowers in trouble are in lockdown: ANZ
Despite offering support, ANZ said freezing home loan repayments will be the last resort, as three in four requests for support stem from NSW. ...Read more
Property
RBA gives APRA’s use of macro tools a tick of approval
Ahead of an expected move to impose tougher lending rules on the banks, the Reserve Bank has looked into previous attempts by APRA to cool the housing market. ...Read more
Property
Federal incentives are driving more first home buyers into the market
While property prices continue to grow, new research suggests that the government’s current crop of first home buyer incentives is having an impact on this segment of the market. ...Read more
Property
Why it now costs 130% more to service a mortgage than 3 decades ago
The lifetime cost of owning a home has increased by over 130 per cent in just three decades, new research has revealed. ...Read more
Property
Using the 30/30/3 rule for home buying during uncertain times
Thinking of buying a home? Uncertain economic times may have you double guessing your purchase, but the 30/30/3 rule can help you make this a reality. ...Read more
Property
Rental yields reach decade high, but not all markets move at the same pace
Changing consumer preferences towards lifestyle destinations and a lack of supply have led to record national price growth, albeit price fluctuations vary region-to-region, fresh figures show. ...Read more
Property
What younger Australians are getting wrong about home loans
As young Australians look to fight the odds and take their first step onto the property ladder, more and more are making easy mistakes. ...Read more
The Olympic effect on property and equity investors; COVID-19 Disaster Payments and super
Listen now
Do lockdowns boost property prices? Are short-sellers levelling the playing field? Did you lodge your tax returns early?
Listen now
Will lockdowns halt the housing boom? Is the metaverse taking over? And the cons of lodging your tax returns early
Listen now
Are you being priced out of the market? Have you got the Tuesday blues? And are you ready for the upcoming super changes?
Listen now
Property
Millennials believe first home buyers need more support
Australia’s up-and-comers in the housing market say more needs to be done to slow rising house prices. ...Read more
Property
3 in 4 borrowers in trouble are in lockdown: ANZ
Despite offering support, ANZ said freezing home loan repayments will be the last resort, as three in four requests for support stem from NSW. ...Read more
Property
RBA gives APRA’s use of macro tools a tick of approval
Ahead of an expected move to impose tougher lending rules on the banks, the Reserve Bank has looked into previous attempts by APRA to cool the housing market. ...Read more
Property
Federal incentives are driving more first home buyers into the market
While property prices continue to grow, new research suggests that the government’s current crop of first home buyer incentives is having an impact on this segment of the market. ...Read more
Property
Why it now costs 130% more to service a mortgage than 3 decades ago
The lifetime cost of owning a home has increased by over 130 per cent in just three decades, new research has revealed. ...Read more
Property
Using the 30/30/3 rule for home buying during uncertain times
Thinking of buying a home? Uncertain economic times may have you double guessing your purchase, but the 30/30/3 rule can help you make this a reality. ...Read more
Property
Rental yields reach decade high, but not all markets move at the same pace
Changing consumer preferences towards lifestyle destinations and a lack of supply have led to record national price growth, albeit price fluctuations vary region-to-region, fresh figures show. ...Read more
Property
What younger Australians are getting wrong about home loans
As young Australians look to fight the odds and take their first step onto the property ladder, more and more are making easy mistakes. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
