Older investors opening up to socially conscious investing

More investors are now seeing potential returns in funds that espouse a cause.
APR 08, 2015
Younger investors have long been interested in socially conscious investing, but a new report from Spectrem Group indicates that older investors — loath to “throw away” money — are starting to turn to funds that espouse a cause, as long as they get a return. “We have done the same research in the past and the surprising thing this time is that the older folks are intrigued by impact investing,” said Cathy McBreen, managing director of Spectrem. The main reason for the change, according to Ms. McBreen, is that people now recognize that socially conscious companies are well-structured and competently run. “The old-fashioned belief that you don't get good returns on these investments is changing,” Ms. McBreen said. The study showed that 25% of young investors, defined as those under 35, have 25% to 74% of their portfolios in socially responsible investments. By contrast, 5% to 10% of investors aged 55 to 64 have a similar proportion of their portfolios in such investments. The study also found that female investors are more likely to invest heavily in socially responsible firms, compared to men. Data showed that 21% percent of female investors invest a quarter of their wealth in impact investing compared with 16% of male investors. In addition, more women than men invest in companies that encourage and promote a diverse workforce. What motivates investors to support sustainable businesses is the hope to create a better world for the future generations and they typically favor investing in areas of water conservation, promotion of good health and solar energy, according to Spectrem.

Latest News

UBS profit beats estimates as Ermotti sees brighter outlook
UBS profit beats estimates as Ermotti sees brighter outlook

Wealth management unit sees inflows of $23 billion.

Evercore to buy advisory firm Robey Warshaw for $196 million
Evercore to buy advisory firm Robey Warshaw for $196 million

Deal will give US investment bank a foothold in lucrative European market.

Gates and Buffett’s Giving Pledge is 15 years old, but many signatories are richer than ever
Gates and Buffett’s Giving Pledge is 15 years old, but many signatories are richer than ever

New report examines the impact that the initiative has had on philanthropy.

Americans stay the course on 401(k) savings despite inflation fears
Americans stay the course on 401(k) savings despite inflation fears

Few feel confident that they will meet their retirement goals.

What advisors need to know about SECURE 2.0’s impact on retirement income planning
What advisors need to know about SECURE 2.0’s impact on retirement income planning

Catch-up contributions, required minimum distributions, and 529 plans are just some of the areas the Biden-ratified legislation touches.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.