The report – Millennials and Investing – found that Australian millennials are 53 per cent more likely to prioritise returns over ethical or ESG concerns than their global counterparts.
Interest in ethical products and ESG was low across the board, challenging the perception of millennials as being driven by concern about climate change and social justice.
Australian millennials placed the most importance on the necessity for low fees and expenses (59 per cent), as well as the transparency of a firm’s investment strategy (57 per cent).
Also of importance was the need for digital services like banking apps and the ability to communicate with experts over the phone or online.
“This study shows a generation of investors who are clearly outcomes focused and demand greater transparency, accountability and engagement than comparatively wealthier generations before them,” said Ross Fox, Calastone managing director for Australia and New Zealand.
“Managers who can tailor product offerings, diversify direct engagement channels, demonstrate their value and maintain transparent investor communication will be the winners in attracting and retaining capital from this maturing millennial market.”
The report also highlighted the need for more education about finance and investing, with 47 per cent of respondents saying they had a poor grasp of investing and more than a third saying that lack of knowledge had prevented them from investing.
While only 10 per cent of Australian millennials invest in funds, they invest more than other countries. The average investment value in Australia was $63,850, while the global average was $44,500.
The study also found that about 59 per cent of Australian millennials were open to investing in large tech companies like Amazon and Netflix, while the average survey response was 50 per cent.
The report surveyed more than 3,000 people in Australia, the UK, France, Germany, the US and Hong Kong.
