Studio Guzzi – news from December 9, 2015

In the next decades, the so-called Millennials (individuals born between 1980-2000) will inherit the heritage of the previous generation; some reports estimate a money transfer, greater than 30 billion dollars only in the USA.
Some studies (1) confirm that Millennials tend more to give priority to investments with a positive social impact, in comparison with previous generations: 96% is interested in philanthropy, and 64% in impact investing.
The latest surveys have shown an inverse correlation between the investor age and the importance of the social impact as an asset class to the decisions of investment: 49% between 51 and 69 years of age (baby boomers), 70% between 35 and 50 years of age (X generation) and 85% within Millennials.
Since the social return of a project is harder to estimate, the new rich are developing two trends: on the one hand, the impact investing operations are almost always performed within the territory where the investor lives (a higher control over the outcome); on the other hand, an advisor is needed, someone who has to be a specialist in the development and the management of such investments.

Notes:
(1) Oppenheimer Funds report “Proving Worth: the Values of Affluent Millennials in North America”, US Trust Bank of America Private Wealth Management survey, Campden Wealth Research UHNW Millennials
Research Report 2015, Capgemini World Wealth Report 2015.