American Century identifies demographic divides across impact investing
American Century has published the findings of a new global survey, aimed at examining attitudes towards impact investing among Australian investors.
The research — which included a survey of 1,005 adults in Australia in 2022 — identified greater demand for impact investing among men, with 69% of male respondents “finding it appealing”, compared to just 57% of women.
This represented a widening in the gender gap, from just 5% in 2021 to 12% in 2022.
“This result may be a factor of men’s overall familiarity with investments and their propensity to invest,” American Century Investments’ head of sustainable investing, Sarah Bratton Hughes, said.
“Our survey found over half of Australian men surveyed (51%) already invest in stocks, bonds, or managed funds, compared to just 28% of women, which is quite a disparity.
“We believe closing the gender-related investing education gap will lead to more women finding impact investing to be increasingly appealing as they understand it can lead to more informed decision-making and better long-term risk-adjusted returns.”
Interest was also higher among younger Australians, with almost three quarters (74%) of Gen Z and millennial respondents expressing interest in impact investing, compared to 63% of Gen X Australians and 48% of Baby Boomers.
Overall, 63% of surveyed respondents in Australians said impact investing was appealing, up from 57% in the previous year.
Moreover, Gen Z respondents said they were more willing to sacrifice investment returns to create a positive impact (56%), compared to just 17% of Baby Boomers.
“While our impact investing surveys show the appeal has increased over the years across all age groups, perhaps it should come as no surprise that the younger generations — those who stand to lose most from investments that do not consider a wider impact on society and the environment - find impact investing more appealing,” Hughes added.
Causes driving demand
Healthcare and disease prevention was cited as the primary cause driving interest in impact investing (33%), followed by environment/climate change action (30%).
On a gender basis, men were more likely to cite education (13%), mitigating poverty (11%), or racial equity and social justice (7%) as their primary cause, with women more interested in healthcare, disease prevention and cures as (39%).
Global snapshot
Australian interest in impact investing ranked third among international counterparts, behind only Singapore (69%) and the United Kingdom (65%).
German investors were the least interested in impact investing, with just over half (51%) attracted to the concept.
“Despite a challenging global economy, an evolving regulatory environment, and political pushback over the last year, interest in sustainable investing not only endures but has grown in most jurisdictions,” Hughes said.
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AUTHOR
Charbel Kadib
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