Our Next Investment: Why Millennials Matter
Identified as a Supertrend by Credit Suisse, Millennials' Values are key when discussing investment opportunities. Characterized unlike any other generation, what sets them apart?
A major factor that unites the Millennials – and differentiates them from previous generations – is a sense of global connectivity combined with a feeling of collective responsibility for the well-being of the world. Millennials also place a lot of emphasis on leisure time and strive to maintain a good 'work-life' balance. They constantly seek unique, new experiences while remaining conscious of the consequences of their actions.
One other key differentiator between the Millennials and previous generations is technology. Often labelled as digital natives, Nannette Hechler-Fayd'herbe, Head of Investment Strategy and Research at Credit Suisse, states that "Millennials are completely digital attuned; technology is intuitive to them – they don't have to learn it, they're born with it." Hence this tech-savvy generation is becoming the driving force behind the global digital landscape.
The sense of collective responsibility that is common among this age group is fueled by these technological advancements. Modern-day digital networking platforms allow the exchange of ideas and views on a global scale – giving them greater understanding of and sympathy with world issues. Sustainability is a topic close to this generation's heart, "more than with any other generation", Hechler-Fayd'herbe notes. Therefore, 'impact-investing' will become common practice in the years ahead. "It is also a generation which is very clear that when it invests, it doesn't only want to see the returns, performance, and risks – it wants to see the impact," she continues. Consequently, Millennials aim to live a healthy mix between work, social and digital connectivity, and general leisure, while simultaneously staying true to their values.
Investing Millennials: It's all about the Future
How do Millennials see themselves? In the recent Credit Suisse Young Investors Program (YIP), participants agreed that sustainability, purpose and passion are important factors when making investment decisions: "To have a positive impact on just one person is already fulfilling enough, but the more people you can help, the better," confirms one YIP participant. This view on investing supports the Supertrends' assertion about the Millennials' sense of global community spirit – they truly care about peers around the world.
Speaking about Millennials' investment behaviors, Dr. Daniel Heine, lecturer at the University of St. Gallen and a guest lecturer at the recent Young Investors Program, explained that this generation is less interested in financial gains than previous age groups and more concerned with feeling some form of connection with their investments. "Sustainability, clean energy and impact-investing will gain importance in the coming years", reinforces Hechler-Fayd'herbe.