ADVISED CLIENTS WANT SUSTAINABLE INVESTING

    The majority of advised UK clients now desire ethical investing due to the Covid pandemic, according to a new report from Prudential. 

    The report looks at intergenerational planning and wealth transfer between advised families amid the financial volatility and insecurity of the pandemic.  

    It found that Covid-19 has increased appetite for sustainable investments across all generations among 60% of millennials, 44% of Gen X and 35% of Baby Boomers. 

    The report shows that 61% now care more about the environment and the planet than they did before the pandemic.  

    More than a quarter of respondents admit they are more concerned than they have ever been. And one in five say they are more worried now that they have children and grandchildren. 

    According to the report, the pandemic has shifted the financial priorities for many adults who now seek financial advice.  

    One in two respondents said they had either already sought advice or were planning to because of the pandemic.  

    And just over one in five were seeking advice to ‘begin their ‘investment journey’, potentially fuelled by individuals who had built up savings, not having the traditional outlets for spending their income.  

    The report also shows that while the trend is common across the generations, it is millennials who are leading the charge. 

    Experts say “With £5.5trn in personal wealth due to be passed to the next generation by 2047, the role intergenerational planning advice played, prior to the pandemic, was already a significant one. Yet the crisis has reframed financial priorities. Not just for those later in life with IHT liabilities, but for all generations. 

    “Once perhaps viewed as a fad, sustainable investing is becoming normalised, making it a fundamental building block within intergenerational financial planning. It also enables clients to leave their children more than just a financial legacy in terms of planet, environment, and society. 

    “With two in five advised clients surveyed confirming they expect to increase the amount they invest in ESG investments over the next five years, incorporating responsible investments into recommendations will become increasingly critical and provides advisers with an exciting opportunity.”