Wealth management firms must better cater to young investors' social beliefs: study

·1 min read

A prominent market research company says wealth management need to better cater to environment and socially-minded investors to attract younger clients.

J.D. Power says we're on the brink of a massive generational wealth transfer, and millennial and Gen Z investors are committed to environmental, social and corporate governance (ESG) investing.

A recent survey by the company found that young investors are twice as likely to increase their investments if they're confident their wealth management firm is committed to ESG investing.

Mike Foy, senior director and head of wealth intelligence at J.D. Power, says Canadian investment firms need to act quickly to ensure that their clients can meet both their financial goals and values.

The survey found that investment firms have lots of room for improvement, with only 36 per cent of investors saying their needs are being completely met.

Forty-six per cent of investors under 40 also said they either have doubts about their firm’s commitment to ESG or don’t know about it, with older respondents also polling similarly.

This report by The Canadian Press was first published May 6, 2021.

The Canadian Press

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