Despite the hype surrounding impact investing, more than half Asia's wealthy next generation has yet to make a single impact investment.
A survey of the next generation of high and ultra-high net worth people in Asia found that virtually all respondents – 98 percent – are looking to increase their allocations to impact investments.
The 110 next generation rich and ultra-rich clients surveyed by Geneva-based Lombard Odier found that easier access to impact investments as well as performance was the driver behind this shift. The younger generation's concern about social and environmental challenges also helped.
Despite the enthusiasm to make a difference, just 3 percent wanted to convert their money into 100 percent impact-driven investments, according to the survey.
Walk the Talk?
Like many banks, Lombard Odier has targeted the second and third generations of family businesses in Asia. Overall, Asia remains behind the rest of the world in impact investing, though 99.1 percent of respondents agreed that social responsibility had become important, a trend first spotted last year.
Despite the increase in willingness among the next generation of rich and ultra-rich to invest with impact, more than half were yet to make a single impact investment, and a further quarter were unfamiliar with the basic tenets.
«We do not believe it will take long for the gap to narrow in Asia with improving availability of investment instruments driving this change,» said Vincent Magnenat, Lombard Odier's head of Asia Pacific.
