There is a growing emphasis on (U)HNWI to ‘do good with their wealth’.

Philanthropy Impact’s recent research looked at changes in the ways the new generation of wealth holders are approaching their wealth and the implications for private client professional advisors.  The findings include:

1. The world is changing and with it the needs and expectations of (U)HNW wealth holders.
2. Younger generation wealth holders (GEN Z, Millennials and Women of Wealth) are increasingly seeking to align their wealth with their values.
3. They expect their professional advisors to provide professional support in numerous, increasingly complex areas related to responsible investing and philanthropy.
   
   • They clearly indicated that the professional advisory industry is falling short of the expectations of emerging wealth holders. There are warnings that the on-going wealth transfer could be accompanied by the next generation changing advisors en masse.
   • Key obstacles limiting the capacity of professional advisors to meet clients’ new expectations have been identified and they include a lack of:
     
     • Clear strategy and services
     • Knowledge and credibility
     • Leadership’s commitment
     • Effective partnering with other firms to meet the 23 services required by clients on an impact investing and philanthropic journey.
     • Specialised training such as CPD certified and CISI Endorsed Philanthropy Imapct training

Additional research with similar implications:

1. Investing for Global Good A Power for Good 2022 (Camden Wealth Limited) research indicated for older generations there is a growing demand for and satisfaction in impact investing and that investors are seeking better services from wealth advisors. 
2. Allianz study – 64% millennials make investment decisions based on values.
3. Schroders Advisor Survey showed that:
   
   1. 65% of people inheriting wealth will not uses their parents’ advisor
   2. There is a lack of strategy for advising younger clients with only 11% of advisors having a strategy to retain, attract and advise women
   3. 60% of wealth in UK will be in the hands of women by 2025
   4. ESG/sustainable investing is becoming mainstream

In meeting changing client needs and their impact driven demand, and to meeting customer centricity regulatory issues professional advisors can future proof their firms by strengthening their values focused offerings– leading to client retention, talent attraction and meeting compliance issues.

Additionally doing so benefits the advisor’s firm.  For example, firms supporting their clients on their philanthropic journey and encouraging them in their ESG/impact investment had

• 6X the median assets of those who do not offer charitable planning
• 3X organic growth
• 1.3X new money
• higher net promotor scores, higher trust levels