OppenheimerFunds and Campden Wealth Publish Coming of Age Report
Study Looks at the Investment Behaviors of Ultra-High Net Worth Millennials
NEW YORK, April 4, 2017 – OppenheimerFunds and Campden Research, a division of Campden Wealth, today published Coming of Age, a study examining the investing identity of the next generation of wealthy families in North America. The report analyzes responses from Millennials who are wealth creators or the next generation of ultra-high net worth (UHNW) families. The survey focused on three main topics: investment acumen, investment behavior and relationships with advisors.
While UHNW Millennials enjoy a growing influence in managing their families’ wealth, the study found only one fifth (21%) are fully satisfied with their families’ current objectives and many plan to make changes in how investments are managed when they assume full control. Most Millennials (74%) are trained and knowledgeable about their family’s portfolio and are beginning to take more measured risks with their individual investment strategies. A clear majority (71%) seeks professional advice before making investment decisions; however the research found that the dynamic between advisors and Millennials could be improved.
“UHNW Millennials are increasingly taking calculated risks with their investments while considering the potential long-term implications of these decisions,” said Ned Dane, Head of Private Client Group at OppenheimerFunds. “Advisors can leverage actionable insights like these to encourage multi-generational family dialogues that incorporate evolving Millennial viewpoints. They can also bring value directly to Millennial clients, for example, by helping them explore alternative investment opportunities and conducting due diligence.”
Millennials are also keen to incorporate environmental, social, and governance (ESG) standards to their family portfolios. The research shows they are embracing impact investing as a means to ‘do good’ in a way that differs from previous generations, which historically have given more directly through philanthropy.
“As Millennials edge closer to taking ownership of the family wealth, it is clear that their views differ from previous generations,” said Dominic Samuelson, CEO of Campden Wealth. “They want to make a positive change through impact investing and by implementing ESG standards to their family portfolios. They also appear to be more open to risk as they intend to access less liquid strategies. Those findings have significant implications for intergenerational wealth transfer and the wider wealth management industry.”
“Understanding the motivations of these investors is critical as we continue to look for new ways to add value for advisors serving UHNW families,” said Art Steinmetz, Chairman and CEO of OppenheimerFunds.
Dr. Rebecca Gooch
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About the Research
A total of 32 UHNW Millennials participated in the online quantitative survey, with analysis and aggregation taking place in October and November 2016. In addition, six UHNW Millennials and three advisors took part in in-depth qualitative interviews from June to September 2016 to provide further context to the findings. Each Millennial respondent was born between 1980 and 1995 and comes from a family with net worth ranging from $35 million to $1 billion. Coming of Age is a follow up to Proving Worth, Campden Wealth and OppenheimerFunds’ study which examined the needs and intentions of the next generation of wealthy families.
OppenheimerFunds, Inc.,a leader in global asset management, is dedicated to providing solutions for its partners and end investors. OppenheimerFunds, including its subsidiaries, manages more than $222 billion in assets for over 13 million shareholder accounts, including sub-accounts, as of February 28, 2017.
Founded in 1959, OppenheimerFunds is an asset manager with a history of providing innovative strategies to its investors. The firm’s 15 investment management teams specialize in equity, fixed income, alternative, multi-asset, and revenue-weighted-ETF strategies, including ESG. OppenheimerFunds and its subsidiaries offer a broad array of products and services to clients, who range from endowments and sovereigns to financial advisors and individual investors. OppenheimerFunds and certain of its subsidiaries provide advisory services to the Oppenheimer family of funds, and OFI Global Asset Management offers solutions to institutions. The firm is also active through its Philanthropy & Community initiative: 10,000 Kids by 2020, reaching children with introductions to math literacy programs. For more information on the firm, visit oppenheimerfunds.com.
Campden Wealth is the leading independent provider of information, education and networking for generational family business owners and family offices globally in person, in print, via research and online.
Campden Research supplies market insight on key sector issues for its client community, and their advisors and suppliers. Through in-depth studies and comprehensive methodologies, Campden Research provides unique and proprietary data and analysis based on primary sources.
Campden Wealth also publishes the leading international business title CampdenFB, aimed at members of family-owned companies in at least their second generation. Campden Wealth further enhanced its international reach and community with the acquisition of the Institute for Private Investors (IPI), the leading membership network of private investors in the United States, founded in 1991 and with the establishment of Campden Family Connect PVT. Ltd a joint venture with the Patni Family in Mumbai, India in 2015.
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