Money Meets Morals

For Millennials, Investing and Values Go Hand In Hand

Transparency, Skepticism Around Socially Responsible Strategies May Be Holding Young Investors Back

NEWPORT BEACH, Calif., Oct. 30, 2017 /PRNewswire/ — Swell Investing announced today the results of its “Money Meets Morals Study,” finding the vast majority (78%) of millennial investors1 are currently investing in socially responsible and impact investing options2 or plan to in the future.

The study was conducted online by Harris Poll on behalf of Swell Investing and gathered insights from more than 2,200 US adults aged 18 and up, including 436 millennials aged 18-36, 235 of whom currently have investments.

While intention around investing in socially responsible and impact investing options is high among younger investors, many have not yet taken action. More than half (54%) of millennial investors say they aren’t currently investing in socially responsible and impact investment options but plan to in the future.

Can you name your top three investments?

Swell’s “Money Meets Morals Study” found that nearly half (49%) of millennials who have investments aren’t able to name the top three companies in their investment portfolios. Millennial investors were also more likely than Gen X (aged 37-52) investors to be skeptical of socially responsible and impact investments with 27% saying that they were concerned that their money isn’t really backing positive companies when investing, compared to only 18% of Gen X investors.

Launched in May of 2017, Swell is an impact investing platform providing an opportunity for nearly anyone to invest in companies that are poised to drive returns by providing innovative solutions to some of the world’s greatest challenges.

“We find that younger generations have a strong desire to use their dollars to improve the world as well as gain a financial return when it comes to investing,” said Dave Fanger, CEO of Swell Investing. “For some, transparency is a barrier. This is a generation that is deeply curious. They’re highly interested in socially responsible and impact investing, but education around the companies they are invested in is key.”

Many investors are in need of more education around socially responsible and impact investments. Nearly two in five (19%) millennial investors say they don’t understand these types of investments, while investors of all age groups (34%) expressed concerns that returns from socially responsible and impact investments aren’t as high when compared with other investments. This concern comes despite extensive research finding that companies with positive policies around their workforce and the environment tend to deliver higher returns to investors when compared to the broad market, such as an index like the Russell 3000.

We find that younger generations have a strong desire to use their dollars to improve the world as well as gain a financial return when it comes to investing

To address misconceptions around impact investing, Swell Investing recently launched a Guide To Impact Investing, available to download here which answers questions around what impact investing is, how it can drive returns and how impact investing differs from other types of socially responsible investments.

To learn more and to begin investing, please visit www.swellinvesting.com.

 

 

[1] Those who have some type of investment
[2] Defined in the survey as investing in companies that are creating positive change in the world and have strong environmental and workforce policies

Money Meets Morals Study Method
This survey was conducted online within the United States by Harris Poll on behalf of Swell Investing from October 9-11, 2017 among 2,207 U.S. adults ages 18 and older, among them 436 Millennials aged 18-36, among whom 235 have investments. This online survey is not based on a probability sample and therefore no estimate of theoretical sampling error can be calculated. For complete survey methodology, including weighting variables, please contact Natalie Rix at press@swellinvesting.com.

About Swell
Swell, an impact investing platform that aims to deliver profit as well as purpose, was built on the belief that today’s biggest challenges will result in tomorrow’s leading industries. Swell’s team identifies high-impact, high-potential companies that are focused on a positive future, making the information and investment opportunity widely available. Swell is an SEC registered investment adviser incubated by Pacific Life, a company that has nearly 150 years of experience in financial services. Learn more at www.swellinvesting.com, facebook.com/swellinvesting, twitter.com/swellinvesting, instagram.com/swellinvesting, linkedin.com/company/swellinvesting, blog.swellinvesting.com.