“… impact investing — investments made to generate specific social or environmental impact alongside financial returns — is expected to grow an eye-catching 15 % by 2024 , reaching an average adoption level of 35 %.”
From a business point of view , data increasingly indicates that ESG practices offer firms a competitive edge , including better operational performance and growth in stock prices by those adopting sustainable practices .
But no matter what wealth clients want incorporated into their portfolios , the pandemic has made them more riskaverse across the board .
The report says following a difficult year in 2020 , clients have now narrowed their financial goals . They are increasingly focused on meeting their personal goals , diversifying their investments , protecting their wealth and maintaining financial security .
While Wealth Members and specifically men are more likely to have a higher risk tolerance , younger investors plan to reduce their risks the most .
Another key trend has been companies having to adapt digitally faster than anticipated , so that their businesses , which have for their longest period been built on face-face meetings , do not lose contact with wealth clients .
Wealth members , therefore , expect continuing and improving engagement in the virtual world , and additional tailor-made services due to the COVID-19 scare .
Interestingly , according to a Deloitte report on 10 disruptive trends in wealth management , it refers to the re-wired investor , who encompasses new thinking patterns , standards and expectations by a new generation of investors . They include Gen X and Gen Y2 investors , as well as baby boomers who are being influenced by their younger peers .
These investors want to be treated as unique individuals with specific goals and preferences . Therefore , they expect to receive advice tailored to their unique circumstances .
Wealth Managers need to ensure that they are able to support the re-wired investor , who has access to multiple channels and advisory models .
These investors also view risk through a different lens – they perceive risk as a downside , rather than volatility . As a result , advisers have had to
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