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

GLP-1 users are trading retirement savings for their prescriptions
GLP-1 users are trading retirement savings for their prescriptions

A Nationwide survey finds 47% of GLP-1 users have never discussed the drugs’ financial impact with an advisor, even as many dip into savings.

Inspired Healthcare sale price of properties is 59% of $1.2 billion sold by advisors
Inspired Healthcare sale price of properties is 59% of $1.2 billion sold by advisors

The hundreds of millions of dollars from a sale of Inspired Healthcare properties does not mean an immediate windfall for investors.

Class action alleges Webull misled investors about China operations
Class action alleges Webull misled investors about China operations

Its SEC filings said one thing - a congressional probe said another.

Investors accuse Netcapital of inflating revenue through sham deals
Investors accuse Netcapital of inflating revenue through sham deals

Sham agreements allegedly padded revenue by 345%.

Pre-retirees are looking for flexibility, security, and guidance when it comes to retirement income: Cerulli
Pre-retirees are looking for flexibility, security, and guidance when it comes to retirement income: Cerulli

"Most pre-retirees are uncomfortable making key retirement income decisions without an advisor's help," said Chris Bailey of Cerulli.

SPONSORED Built on insurance experience to deliver on long-term promises

Knighthead Life entered the market with a competitive MYGA. A strong launch earned advisor confidence and paved the way for FIAs.

SPONSORED In the Age of AI, Trust Becomes the Advisor's Greatest Asset

As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor