Next Gen’ clients seek greener, leaner wealth managers

Ethically minded, obsessed with technology and wealthy — the next generation of private client is a new breed of customer that wants a new kind of wealth manager to match.

The younger client is more interested in an iPhone-friendly investment portfolio than an adviser with the correct width of pinstripe and will want to debate the merits of ethical and environmental funds rather than take a trip to the golf course.

“The attitude of the younger generation of client is very different [from their parents],” says Matthew Fleming, partner at family office Stonehage Fleming. “There has been an unmistakable shift in the past five years towards impact and sustainability through overtly responsible investing.” Faced with the realities of climate change and bringing up children, wealthy millennial investors want to know their money is doing good rather than adding to the world’s problems, say wealth managers. Just as they might buy organic produce, they want their adviser to show them sustainable investments too.

More than 40 per cent of the 45 wealth managers surveyed by Wealth-X on behalf of the FT say they are focusing on environmental, social and governance (ESG) themes as a way of appealing to the next generation. Many have introduced funds or portfolios or are launching new ESG services to enhance their offering in this area. But why is this so important?

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