Who Rules the Investment World? Women & Millennials!
Investing has long carried a stigma of something old men in cigar-filled rooms or white shirts on Wall Street pondering how to carve up the world. Thankfully a shift has started to occur. It is estimated that by 2030, nearly 2/3 of the nation's wealth will be controlled by women (as of 2017, that number was already at 60%). With 95% of women being financial decision makers and nearly half being the primary breadwinners at home, you've come a long way baby!
This week women marched in cities and towns across the U.S. to keep that shift moving in the right direction. Women gathered to lift up, encourage, and support one another to, among other things, run for office, take a stand against discrimination...#TimesUp...and push for a more inclusive, sustainable society. We've long followed corporate governance and leadership accountability campaigns that prove when women join boards of directors and top management, companies become more responsible and tend to perform better. But women have an even greater chance to shape long-term investments in the corporate world, and how companies are governed.
Millennials also possess a deep-rooted belief in being socially conscious but do not always take the time to learn how to use their investment dollars or are bullied by traditional investment advisers (opting to let the funds ride in employer selected options). The Millennial is the Message from Corporate Knights and Banking on Data to Power the Impact Investing Movement from Green Money Journal both provide positive views on millennial interest in investing.
It's true, as the headline states...women rule the financial world (and millennials not far behind) but they don't always take control of their own assets. Since 2014, these groups have helped doubled ESG assets to more than $8.1 trillion worldwide. Here at Heartland we always strive to educate the working families and the next generation of responsible investors as demonstrated through our Responsible Investor Handbook, the Labor Capital Fellowship with Georgetown University, webinars, and more.
We speak to the importance of these two demographics our Thursday Espresso highlighting the following articles:
John Waggoner from Investment News discusses that ESG funds boosted by women and millennial investors has spurred advisers to do their homework in supporting the demand.
Financial Advisor Magazine has developed a series around Women Leaders in Sustainable Finance demonstrating the various roles women are playing in advancing social impact enterprises.
Finally, Vanessa McGrady wrote a great piece supporting why we continue our mission of educating the next generation. Millennials Like Social Conscious Companies, But Don't Invest In Them backs up the importance of social causes, but that "Millennials say they don't understand these kinds of fund," when it comes to investing.
Remember - one for all and all for now!