Future Returns: Millennials and Sustainable Investing
Kanebridge News
    HOUSE MEDIAN ASKING PRICES AND WEEKLY CHANGE     Sydney $1,516,817 (-0.06%)       Melbourne $971,359 (-1.00%)       Brisbane $819,969 (+2.77%)       Adelaide $731,547 (+1.72%)       Perth $621,459 (+0.34%)       Hobart $751,359 (-0.46%)       Darwin $633,554 (-4.02%)       Canberra $1,005,229 (+2.77%)       National $966,406 (+0.40%)                UNIT MEDIAN ASKING PRICES AND WEEKLY CHANGE     Sydney $700,089 (-0.30%)       Melbourne $470,277 (-0.26%)       Brisbane $404,718 (+2.58%)       Adelaide $332,602 (+1.44%)       Perth $348,181 (-0.09%)       Hobart $551,005 (+2.68%)       Darwin $355,689 (-3.55%)       Canberra $477,440 (+4.12%)       National $484,891 (+0.89%)                HOUSES FOR SALE AND WEEKLY CHANGE     Sydney 8,451 (-507)       Melbourne 12,654 (-279)       Brisbane 9,158 (+847)       Adelaide 2,765 (-40)       Perth 9,974 (+39)       Hobart 595 (+36)       Darwin 247 (-1)       Canberra 666 (-49)       National 44,510 (+46)                UNITS FOR SALE AND WEEKLY CHANGE     Sydney 8,895 (+164)       Melbourne 8,149 (-24)       Brisbane 2,260 (+33)       Adelaide 649 (+5)       Perth 2,489 (-21)       Hobart 101 (-3)           Canberra 430 (+13)       National 23,351 (+167)                HOUSE MEDIAN ASKING RENTS AND WEEKLY CHANGE     Sydney $630 $0       Melbourne $470 $0       Brisbane $460 ($0)       Adelaide $495 (+$5)       Perth $500 ($0)       Hobart $550 $0       Darwin $600 ($0)       Canberra $700 ($0)       National $562 (+$)                UNIT MEDIAN ASKING RENTS AND WEEKLY CHANGE     Sydney $540 (+$10)       Melbourne $410 (+$2)       Brisbane $460 (+$10)       Adelaide $380 $0       Perth $440 (-$10)       Hobart $450 $0       Darwin $500 ($0)       Canberra $550 $0       National $473 (+$2)                HOUSES FOR RENT AND WEEKLY CHANGE     Sydney 5,470 (-50)       Melbourne 7,404 (-70)       Brisbane 1,986 (-122)       Adelaide 875 (-29)       Perth 1,838 (-38)       Hobart 254 (+18)       Darwin 70 (-3)       Canberra 388 (+17)       National 18,285 (-277)                UNITS FOR RENT AND WEEKLY CHANGE     Sydney 10,652 (+58)       Melbourne 9,001 (-180)       Brisbane 1,567Brisbane 1,679 (-62)       Adelaide 403 (+4)       Perth 1,050 (-21)       Hobart 87 (+1)       Darwin 131 (-10)       Canberra 453 (+43)       National 23,344 (-167)                HOUSE ANNUAL GROSS YIELDS AND TREND       Sydney 2.16% (↑)      Melbourne 2.52% (↑)        Brisbane 2.92% (↓)       Adelaide 3.52% (↓)       Perth 4.18% (↓)     Hobart 3.81% (↑)      Darwin 4.92% (↑)        Canberra 3.62% (↓)       National 3.03% (↓)            UNIT ANNUAL GROSS YIELDS AND TREND       Sydney 4.01% (↑)      Melbourne 4.53% (↑)        Brisbane 5.91% (↓)       Adelaide 5.94% (↓)       Perth 6.57% (↓)       Hobart 4.25% (↓)     Darwin 7.31% (↑)        Canberra 5.99% (↓)       National 5.07% (↓)            HOUSE RENTAL VACANCY RATES AND TREND         Sydney 1.5% (↓)       Melbourne 1.9% (↓)       Brisbane 0.6% (↓)       Adelaide 0.5% (↓)       Perth 1.0% (↓)     Hobart 0.8% (↑)        Darwin 0.9% (↓)       Canberra 0.6% (↓)     National 1.2%        National 1.2% (↓)            UNIT RENTAL VACANCY RATES AND TREND         Sydney 2.3%ey 2.4% (↓)       Melbourne 3.0% (↓)       Brisbane 1.3% (↓)       Adelaide 0.7% (↓)     Perth 1.3% (↑)        Hobart 1.2% (↓)     Darwin 1.1% (↑)        Canberra 1.6% (↓)     National 2.1%       National 2.1% (↓)            AVERAGE DAYS TO SELL HOUSES AND TREND         Sydney 31.2 (↓)       Melbourne 30.9 (↓)       Brisbane 35.7 (↓)       Adelaide 27.6 (↓)       Perth 40.5 (↓)       Hobart 30.2 (↓)       Darwin 27.1 (↓)     Canberra 28.1 (↑)        National 31.4 (↓)            AVERAGE DAYS TO SELL UNITS AND TREND         Sydney 33.7 (↓)       Melbourne 32.6 (↓)       Brisbane 34.8 (↓)       Adelaide 29.5 (↓)       Perth 46.6 (↓)       Hobart 27.4 (↓)       Darwin 38.2 (↓)       Canberra 30.2 (↓)       National 34.1 (↓)           
Share Button

Future Returns: Millennials and Sustainable Investing

Millenials are more eager than any group to invest funds sustainably according to their value.

By Rob Csernyik
Wed, Nov 24, 2021 2:11pmGrey Clock 4 min

They’re about to inherit a US$30 trillion wealth transfer, and more eager than any group to invest funds sustainably according to their values. But millennials are still the biggest believers that doing so means facing a financial tradeoff, says a new report.

Last month, Morgan Stanley’s Institute for Sustainable Investing published its fourth Sustainable Signals white paper, which surveyed 800 American individual investors 18 and over with minimum investable assets of US$100,000. Just over a quarter were millennials aged 25-38.

The findings show sustainable investing interest is reaching new levels, even with the economic uncertainty caused by the Covid-19 pandemic. Millennial interest in sustainable investing grew by four points to 99%, compared to a six point decline to 79% among the general population.

Yet there’s a paradoxical finding: Despite record levels of interest, more millennials—83% opposed to 70% in the general population—believe the debunked “trade-off” myth that sustainable investing means sacrificing returns.

For Matt Slovik, head of global sustainable finance at Morgan Stanley, it was one of the most interesting findings of the survey.

“This shows that if you look at the percentage of millennials that are interested in sustainable investing, there’s a real desire and recognition that finance can do more,” Stovik says. “And there’s more to finance than simply focusing on the return aspect.”

Morgan Stanley found no trade-off between financial performance between sustainable and traditional U.S. equity funds between 2004 and 2020, and as millennial investors become more educated and move into this investing arena they have the power to transform it.

Slovik spoke to Penta about some of the most surprising insights the survey unearthed about millennial investors.

New Face of Financial Consumption

“There’s a desire to consume finance in many of the same ways that millennials and others have really taken to clothing and food and other things in their lives,” Slovik says. Just as millennial investors ask questions about impact, sourcing, and production when shopping for themselves, they’re starting to look at their portfolios with a similar fine tooth comb. “I think that the finance and the integration of sustainability considerations is a natural evolution outgrowth of that trend.”

Slovik said multiple factors contribute to these changing habits, from the way millennials drive consumption, to where they were in life during the financial crisis, to the impacts they’re seeing from climate change.

“All of that really informs the fact that the data seems to suggest that they’re thinking holistically and more broadly about their investments than I think we’ve seen broadly and historically,” he says.

Greenwashing Won’t Cut It

It’s not just that millennial investors are looking for key data, there’s a higher watermark for what they find. Millennial investors have more sophisticated demands for what it means to do environmental or sustainable good, and lower tolerance for greenwashing, where companies make green claims that aren’t backed up through practices.

Sustainable Signals uncovered a growing concern over how authentic a firm’s ESG activities are. On a question about barriers to including sustainable investing for individuals the second place answer was brand new to this year’s survey: “concerns about authenticity or greenwashing.” (A third, also new, was “lack of tools to measure sustainable impact.”)

“As the market has evolved and matured, investors are focused on understanding what it is that they’re getting,” Slovik says. Though he says we’re entering a clear “data age of ESG” investing, thanks to increasing disclosures from companies and a growing number of data providers, he adds this is still in early days.

Among the resources available to investors, he says, is Morgan Stanley’s own Impact Quotient (or IQ) program that helps provide additional transparency for clients on over 100 environmental or impact preferences.

“As people are better able to understand the impact or exposure or alignment of their investments, you’re also seeing a desire to bring those in line with personal or organizational mission and goals,” Slovik says.

Money Follows Social Movements

Though climate change is still a top concern for millennial investors, there’s evidence that their definition of sustainability is expanding.

“Millennials are looking for more out of finance, and I think this idea of sustainability really does connect with the way that they seem to see the world more broadly,” Slovik says. Two things which have impacted that world view recently have been the pandemic and the racial justice movement.

The pandemic shifted investors’ thematic priorities when it comes to sustainability. Covid-19 led millennials to a heightened interest in addressing public health through their investment activity (69% of millennials compared to 61% of the general population) as well as supporting small businesses (68% to 61% of the general population).

Millennials believe their money has the power to change. The previous Sustainable Signals paper noted 85% of millennials believe their investments could influence climate change, and 89% that their investments could lift people out of poverty.

The 2021 report also finds 75% of millennial investors have made or plan to make investment changes within 12 months in response to racial justice movements. Comparatively, only 50% of the general population planned to do the same.

Slovik says this trend has accelerated since last summer, though it existed before. This type of investment shift can include “supporting diverse-owned, or -run asset managers, to thinking about how individual companies may either excel or lag related to racial equity records,” he adds.

Reprinted by permission of Penta. Copyright 2021 Dow Jones & Company. Inc. All Rights Reserved Worldwide. Original date of publication: November 23, 2021.

MOST POPULAR

Interior designer Thomas Hamel on where it goes wrong in so many homes.

Following the devastation of recent flooding, experts are urging government intervention to drive the cessation of building in areas at risk.

Related Stories
Money
Aussie savings survey reveals gender differences in investment patterns
By Robyn Willis 23/09/2022
Money
Fed Raises Interest Rates by 0.75 Percentage Point for Third Straight Meeting
By NICK TIMIRAOS 23/09/2022
Money
Patagonia Founder Is Giving His Company Away in Pledge to Fight Climate Change
By JOSEPH DE AVILA 15/09/2022
Related Stories

The 390-acre property has 2 miles of frontage on the Rogue River

By LIBERTINA BRANDT
Tue, Sep 27, 2022 8:47am 2 min

Former “Dallas” star Patrick Duffy is putting his roughly 390-acre Oregon ranch on the market for $14 million.

The property sits along the Rogue River outside the city of Medford in southern Oregon, according to Alan DeVries of Sotheby’s International Realty, who has the listing with colleague Matt Cook.

Mr. Duffy said he bought the first roughly 130 acres of the property in 1990 for roughly $1.5 million with his late wife, Carlyn Rosser. The couple spent roughly two decades and about $3 million buying surrounding properties when they went up for sale, said the actor, who has made the ranch his primary home since the early 2000s.

“My family always felt like we were stewards as opposed to owners,” said Mr. Duffy, 73. “We kept the boundaries sacred.”

Mr. Duffy said he first saw the property while fishing with a friend. The property contained a few structures, including what is now the main house, but was mostly wilderness, he said.

“It was pristine,” he said. “There was no paved road. There were some trails through the woods and about a mile—a little less than a mile—of river frontage.”

Mr. Duffy said he flew Ms. Rosser out to see the ranch, and they bought it. The main house has four bedrooms, and connects to a gallery where the couple displayed their art collection. They converted a caretaker’s cottage into a one-bedroom guesthouse with a loft. They also added a building that contains a hot tub overlooking the river, a structure for an indoor lap pool, and a wine cellar built into the side of a mountain, all within walking distance of each other.

As they purchased adjacent properties over the years, they acquired eight more houses and several pastures that are rented out to local ranchers. One of the homes was demolished, six are rented to tenants, and one is used as the ranch manager’s house, according to Mr. Duffy.

“We became a working ranch but not with our own animals,” he said. “It added the most beautiful, bucolic sense of the place.”

A homestead that dates back over 100 years still sits at the entrance to the property, he said. In it he found an old stove, which he restored and put in the main house. But the majority of the roughly 390 acres remains wilderness. The property now has approximately 2 miles of river frontage, according to Mr. DeVries.

For roughly a decade, Mr. Duffy and Ms. Rosser used the ranch as a family getaway from their primary home in Los Angeles. Then in the early 2000s, when their children went off to college, they decided to move there full time.

Ms. Rosser died in 2017, and Mr. Duffy said he plans to move full-time to either California or Colorado. He will keep a few parcels of land that aren’t attached to the main ranch, according to Mr. DeVries.

Mr. Duffy is well-known for his role as Bobby Ewing in the TV drama “Dallas,” which ran from 1978 to 1991. He also played Frank Lambert on the 1990s sitcom “Step By Step.” Today he runs an online sourdough business, called Duffy’s Dough, with his partner, Linda Purl.

Related Stories
Property
Auction Market Still Strong In Spring
By Kanebridge News 20/09/2021
Property
Rents Increasing At Fastest Rate In 14 Years
By Terry Christodoulou 27/04/2021
Hyundai and Apple
Money
Apple’s Electric-Vehicle Talks With Hyundai Break Down
By Tim Higgins and Elizabeth Koh 09/02/2021