NEW YORK, Dec. 9, 2015 - OppenheimerFunds and Campden Research, a division of Campden Wealth, today published Proving Worth, the first study to examine the needs and intentions 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: values-based investing, drivers of decision-making, and attitudes toward advisors. The research reveals some attitudes held in common with the broader group of generational peers as well as some notable differences.
“The millennials we spoke with share an undeniable commitment to philanthropy. They have a strong desire to preserve wealth for future generations, while creating a lasting and positive impact on the world,” said Ned Dane, Head of Private Client Group at OppenheimerFunds. “We want to better understand the forces that influence this unique and important client segment to more effectively assist the advisors who serve it.”
The study shows that UHNW millennials want to engage in philanthropy and impact investing. They are broadly more conservative than their parents’ generation and are more focused on wealth preservation and sustaining their families legacy. The majority of UHNW millennials are involved in decision-making in the family office and already serve on committees or boards. However, they are not yet making strategic decisions. UHNW millennials seek guidance from financial advisors on intergenerational wealth transfer. They want a high-touch service from advisors who take time to know them personally and understand their families’ goals as well as their own.
“The results show that millennials have a long-term focus, prioritizing measurements – accountability, sustainability, and long-term returns – over ‘feel-good’ factors,” said Dominic Samuelson, CEO of Campden Wealth. “We hope this report will prompt discussion and comment about how to best serve these individuals who aim to pursue lives with purpose.”
“This study revealed a natural alignment between what OppenheimerFunds and UHNW millennials believe is the right way to invest,” said Art Steinmetz, Chairman and CEO of OppenheimerFunds. “For nearly 60 years, looking to the long-term has been at the core of who we are as investors and as a firm.”
A total of 32 UHNW millennials participated in the online quantitative survey, and aggregation and analysis took place in September and October 2015. In addition, 10 UHNW millennials took part in in-depth qualitative interviews. Each respondent was born between 1980 and 1995 and comes from a family with net worth ranging from $35 million to $1 billion.