Viewpoint: Generational Musings on Impact Investing: Are They Worth the Paper?

Wednesday, September 27, 2017

The public’s obsession with the behavior of millennials continues. Last week, Fast Company wrote that as millennials inherit wealth, their participation in impact investing might significantly increase, maybe. The article quotes Campden Wealth’s director of research, who indicates that impact investing “is an area worth watching. While we’re at 28 percent now, we could see a significant shift in impact investing over the next 10 to 15 years as the next generation takes control of the family wealth.” Morgan Stanley’s report also reflects the same prediction. Their report indicates that over 75 percent of millennials believe their investments can “create positive change.”

Of course, the idea of investing judiciously so your investments do not do damage is clearly increasingly a thing, as divestment movements pressure large institutions, for- profit and nonprofit alike, to rid themselves of fossil fuel and private prison investments among others seen as toxic, but that endeavor differs slightly from the idea of impact investing.

This research ought to be taken with a grain of salt—or, perhaps, a whole shaker. Both the Morgan Stanley and Campden Wealth reports project current characteristics into the future, expecting millennial priorities to remain stagnant as time goes on.

Photo courtesy of reynermedia.

Source: Nonprofit Quarterly (link opens in a new window)

Impact Assessment, Investing
impact investing, philanthropy