Generational diversity is a source of both tension and innovation in families and businesses, and millennials are challenging traditional approaches to investing, philanthropy and pursuit of life and career goals, according to a survey report released by Bank of America Private Wealth Management business, US Trust.

The survey found that millennials who invest are approaching investing quite differently from how older generations did, according to Keith T. Banks, president of US Trust, Bank of America Wealth Management.

"As many as five different generations are now active in the workforce and contributing to family dynamics and financial decision-making," said Banks. "Perspective and participation of multiple generations are highly valued, but are also complex and require advanced planning and communication."

The youngest and wealthiest investors are more likely to invest in more sophisticated, non-traditional assets such as private equity funds, venture capital and structured products. Nearly half of high-net-worth investors own or are interested in private equity investments; about one-third also own or are interested in venture capital and hedge funds; and four in 10 currently own, and another 27% are interested in, tangible assets, particularly residential investment real estate and commercial property, according to the survey.

The findings do not reflect a shift from other asset classes such as fixed income or equities but a preference for more sophisticated assets and strategies including structured products. However, the report points that as one of the takeaways is that many of the wealthy are not having meaningful discussions or getting professional advice for their own financial goals or for structuring and managing multigenerational wealth and related family dynamics.

'Those who are advised are more likely to have proactive plans and more relevant or sophisticated strategies in place than those who are non-advised,' stated the report.

US Trust, which surveyed over 800 high-net-worth households with at least US$3m in investable assets to explore differences in generational experiences, expectations and behaviour that influence the way they build, manage and share wealth, also found that in terms of investing, baby boomers and older investors are relying primarily on stocks, bonds and cash with aggressive equity allocations of 60%, on average, that conflict with their lower risk tolerance and importance placed on asset preservation.

By comparison, millennials have only 41% of their portfolios allocated to stocks and bonds, but they have large cash positions (47% of their portfolios on average) reserved primarily for opportunistic acquisitions.

The study also found a high degree of multi-generational financial interdependence but also emerging conflicts and distinctly different approaches in four key areas: investing, family, giving, and work.

According to the report, traditional investments are giving way to alternative, opportunistic and personalized strategies by a new generation of investors looking for growth, income and positive impact.

Thirty-nine percent of millennials own private equity investments and tangible assets (37%), which include residential investment property (63%), farmland (24%), timber (23%), and oil and gas properties (36%). Millennials are also driving growth and interest in impact investments, with 88% saying a company's impact on the society and environment is an important basis of their investment decisions.

The survey also found that twice as many millennials as 'baby boomers' and the 'Silent Generation' say they give back by investing in companies that support issues and causes important to them (32% compared to 14%, respectively); while 46% overall and 78% of millennials agree that investing in companies based on social, environment and governance (ESG) factors is a way to transfer responsible money-making principles to younger generations.

'While the impact of generational diversity continues to manifest itself in family dynamics, by empowering each generation to interpret, innovate and contribute in its own way, families can be enriched, rather than divided, by generational differences,' said Chris Heilmann, vice chairman, US Trust.

BofA remains to leading issuer of structured products in the US retail market where it has sold over US$4.3bn across 146 products and 14% market share, year to date. The bank was the top issuer in 2016 with 21% market share in 2016.

Most of the products marketed by Bank of America featured single indexes including the S&P 500 index, the Eurostoxx 50 index, and the Russell 2000 index.

Bank of America was also behind the Accelerated Return Notes - S&P 500 (22547V485), the third highest-selling product YTD which sold US123m in January.

Click in the link to read the full BofA survey report.

Survey Methodology: The 2017 US Trust Insights on Wealth and Worth survey is based on a nationwide survey of 808 high net worth and ultra-high net worth adults with at least US$3 million in investable assets, not including the value of their primary residence. Respondents were equally divided among those who have between US$3 million and US$5 million, US$5 million and US$10 million, and US$10 million or more in investable assets. The survey was conducted online by the independent research firm Phoenix Marketing International and completed in February 2017.

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