You have probably heard of the Davos summit going on this week, unless you are living under a rock.
What many people don’t consider is that the younger generation will be the beneficiaries of the largest transfer of wealth in history – more than $30trn globally once the baby boomers die.
This huge increase in inheritance will lead to a dramatical swift in power and priorities for many firms.
So what are the likely trends in the 2020s and beyond?
- An increased focus on environmental and sustainable investing – and not just returns and past performance. Countless studies have shown that younger investors consider more factors when making decisions, compared to those already in middle-age.
- More ETFs that consider the environment. For example ETF index-linked investments that exclude oil & gas companies.
- An increase in younger investors amongst wealth management firms
- Changes in consumption habits more likely, and beyond wealth management
Whatever the short-term political decisions about the environment, the demand for these “ethical investments” will likely increase.