Millennials want to invest in companies that do society and the environment good, but a fund manager has warned there are not enough funds to cater for this emerging investing generation.
Amanda Young, head of responsible investment at Standard Life Investments, said that millennials – young people born within the past 25 years – preferred to invest in companies that achieve positive social outcomes in the world.
She said that while this type of impact investment was “still on the fringes of the asset management world”, this would change as more millennials started investing.
Ms Young added: “The investment industry will need to consider and develop innovative ways to invest that reflect these changing attitudes. Millennials are increasingly demanding investment solutions that ensure their money also has a positive environmental and social impact.”
In a recent Standard Life Investments YouGov poll, nearly half of 18-24-year-old investors chose principles-led investment, and nearly 50 per cent said they felt strongly about the environment.
Julie Flynn, IFA at Glasgow-based Bree Wealth & Tax Management, said: “If you raise ethical investment as an option, people are generally interested. Financial advisers do not often raise it but I do and find people are interested. I would back what Standard Life says, but not every investment would be socially viable because of the returns it offers.”