Millennials are increasingly looking to invest in assets that are socially and environmentally responsible, placing pressure on super funds to create appropriate investment strategies for the generation, says Equity Trustees.
Speaking to InvestorDaily, Equity Trustees general manager of philanthropy Tabitha Lovett pointed out that millennials, more than other generations, seek to invest in assets that are socially responsible.
“You do see the millennial generation very concerned about climate issues,” she said.
Ms Lovett noted that millennials’ appetite for responsible investment will change the way superannuation funds construct investment strategies for the generation.
“It’s the power of the consumer voice,” Ms Lovett said.
She argued that millennials are asking questions such as: What’s the corporate [and] social responsibility approach of the companies that my super’s involved with? Is there an incompatibility with the investments and what I believe in?
Moreover, Ms Lovett said millennials are using unconventional investment vehicles, such as crowdfunding, to support the issues they deem to be important.
Crowdfunding is likely to take off and become “enormous”, particularly online, she added, noting that the internet and advancements in technology are underpinning the popularity of crowdfunding.
“[Technology] is effectively communicating the opportunities and capturing the interest of the public. You can’t imagine a way of doing it without the internet. It wouldn’t have the same reach,” Ms Lovett said.
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