The looming $68 trillion wealth transfer from Boomers to their heirs is one of the main arguments for why advisors need to better understand the next generations’ values. As this survey finds, advisors may want to review their stance on ESG and diversity and inclusion strategies, as younger generations have a much more positive view of these themes than their Boomer counterparts.
In fact, advisors report that Millennial and Gen Xer clients are more than twice as likely as Boomer clients to believe that ESG is “very important” to an investment strategy. Meanwhile, women are more than three times as likely as male clients to say the same. A similar pattern plays out when considering the importance of diversity and inclusion strategies, albeit with a less pronounced difference.
As the makeup of advisors’ client base skews increasingly toward younger generations, advisors would do well to pay attention to shifting views about ESG, diversity and inclusion, and other thematic investing strategies. Moreover, the fact that women are assuming control of an ever-larger share of private wealth underscores the importance of this shift in client preferences.