Powered by momentummedia
nestegg logo
Powered by momentummedia
nestegg logo
nestegg logo

Invest

Ethical investments on the backburner for millennials

By Cameron Micallef · October 09 2019
Reading:
egg

Invest

Ethical investments on the backburner for millennials

By Cameron Micallef
October 09 2019
Reading:
egg
Ethical investments on the backburner for millennials

Ethical investments on the backburner for millennials

author image
By Cameron Micallef · October 09 2019
Reading:
egg
Ethical investments on the backburner for millennials

Despite taking a moral high ground, Aussie millennials still select profit over ethical investing when deciding on an investment strategy, a survey has revealed.

The research from Calastone has shown millennials are returns-focused investors: 60 per cent said long-term returns are rated first as most important consideration for them, while only 37 per cent indicated that investment in ethical funds, causes or products was important to them.

The survey revealed a global consensus that the least important consideration for investors is alignment with ethical funds, causes and products, despite the younger generation being behaviourally led by their support for social, ethical and governance issues.

Ross Fox, Calastone managing director Australia and New Zealand, said the survey results challenged industry-wide views of millennials.

“This study shows a generation of investors who are clearly outcomes-focused and demand greater transparency, accountability and engagement than comparatively wealthier generations before them,” he said.

Advertisement
Advertisement

The Calastone report found Australians in particular are also keenly aware and focused on the fees and expenses associated with an investment opportunity, investing with it rating second as most important consideration, followed closely by a firm’s reputation.

Aussie millennials are also more open to big tech companies compared with the rest of the world, which suggests the domestic industry might need to better adapt to new technologies.

“While big tech companies such as Apple, Amazon and Netflix have not yet made inroads into asset management, many experts expect they will at some point, so asset managers need to be thinking now about how to innovate and improve customer experiences,” Mr Fox said.

He also noted that the study highlights gender disparity as an issue for the global investment industry, with 39 per cent of young men owning investment products compared to 27 per cent women.

“Calastone’s findings reveal areas of focus for asset managers and their distribution channels to improve engagement with millennial men and women who are clearly receptive to long-term investing provided they see value and transparency and receive good service along the way,” the managing director said.

nestegg recently reported than Gen Z females have over 20 per cent more in stock market assets than males in the same generation group. 

Ethical investments on the backburner for millennials
Ethical investments on the backburner for millennials
nestegg logo

Forward this article to a friend. Follow us on Linkedin. Join us on Facebook. Find us on Twitter for the latest updates
Rate the article
author image

About the author

Cameron is a journalist for Momentum Media's nestegg. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leveraging their insights to grow your portfolio.

Join the nestegg community

We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians

Your email address will be shared with nestegg and subject to our Privacy Policy

About the author

Cameron is a journalist for Momentum Media's nestegg. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leveraging their insights to grow your portfolio.

Join The Nest Egg community

We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians

Your email address will be shared with nestegg and subject to our Privacy Policy

LATEST POLL

Are you seeking alternatives to equity and property in the next 12 months?

Yes - 44.4%
No - 55.6%

Total votes: 473
The voting for this poll has ended

From the web

Recommended by Spike Native Network

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.