Millennials driving change in how the super rich invest their money

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• Nearly one in three family offices were engaged in
  sustainable and impact investing in 2017, with nearly half of
  them planning to increase their investments in the next
  year.
• 
  Family offices are private offices that manage
  the wealth of ultra-high-net-worth investors.
  
• 
  According to a survey by UBS and Campden Wealth, 39% of
  respondents projected that when the next generation takes
  control of their family’s wealth, they will increase their
  allocation to impact and environmental, social and governance
  (ESG) investing.

Family offices are bracing for big changes driven by millennials.
In 2017, nearly one in three family offices were engaged in
sustainable and impact investing, with nearly half of them
planning to increase those investments in the next year,
according to a survey conducted by UBS and Campden Wealth.

With nearly two-thirds of next-generation heirs expected to take
over within the next 10-15 years, family offices are starting to
tailor their investments based on their
preferences. Family offices are private offices that
manage the wealth of ultra-high-net-worth investors.

According to UBS and Campden’s annual survey on family
offices, the next generation will raise their investments in
impact and sustainable investing.

“39% of respondents projected that when the next generation takes
on control of their families’ wealth, they will increase their
allocation to impact and environmental, social and governance
(ESG) investing,” the report said. The report was
based on surveys of 311 family offices across the
world. Each respondent, either worked or managed assets for
a firm with an average of $1.1 billion.

Globally, there are now $22.89 trillion of assets being
professionally managed under responsible investment strategies,
an increase of 25% since 2014, according
to the Global Sustainable Investment Review. The most
commonly invested areas include clean energy, water, gender
equality, and healthcare. 

Private equity and equity markets are the popular vehicles
for impact and sustainable investing, making up 67% and 39% of
their respective portfolio allocations. Others notable areas
included 
real estate (27%),
microfinance (21%), and private debt (20%).