We recently interviewed dozens of wealthy Millennials from high-net-worth families over a four-month period to gain insights into their investment behaviors and interests.

 

This process provided us with an in-depth look at how next-generation wealth holders are investing their money, managing risk, and working with advisors.

 

As part of our research we interviewed Evan, a self-described impact investor who’s in his mid-30s. Evan is a sophisticated investor who works as a hedge fund manager and financial consultant. He takes a hands-on approach to managing his family’s investments, and his goal for the portfolio emphasizes impact investments – which seek to have a measurable, positive impact on society while generating steady long-term returns.

 

Evan says he has mixed feelings about the advisors who execute his trades and provide him with research. He also acknowledges that although he’s passionate about impact investing, his family portfolio will never be 100% impact due to the inherent risks.

 

Here are some highlights from our interview:

 

On Advisors’ Role in His Impact Investments

“My values-based portfolio is managed pretty much strictly by me. I’ve been both satisfied and dissatisfied with advisors … I don’t have an impact investment specialist and don’t want one.”

 

How He Diversifies His Portfolio

“Right now, I think a 70% equity position, a 6%-8% cash position and the rest in fixed income is good for me. If I were 65, I’d probably have a different management position.

 

On Risk Management

Evan is not prepared to assume greater risk in his personal portfolio. As for the family portfolio, he believes it’s exposed to the right amount of risk to achieve its goals.

What Wealthy Millennial Investors Want -- OppenheimerFunds

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