Our Equities Trader, Morgan McGuire, was featured in Stockhead discussing how ESG will play a big part of Australia’s largest wealth transfer in history.
According to Blackrock, wealth is being passed down from the wealthiest generation in history, the baby boomers (those born between 1946 and 1964), to the millennials (those who are currently the age of 25 and 40).
Millennials in Australia are expected to inherit $3.5 trillion over the next two decades, according to estimates. For the ordinary Australian, this corresponds to roughly $320,000.
It's the type of statistic that might tip the financial industry's hand, as it begins to see the need to be ready for not only wealth transfer, but also new investing ideas.
Morgan McGuire believes that financial advisors must adapt to this new breed of investor.
“It’s pretty significant when you look at it in those figures... Specifically, the financial industry will need to recognise and understand ESG, and the ethical investment framework that is developing globally and domestically... All of that will need to be really factored into the wealth transfer."
Morgan McGuire, Equities Trader, Barclay Pearce Capital.
McGuire also feels that the age of rising cryptos and meme stocks that fluctuate based on a single tweet or social media post is finished.
Morgan states:
"We saw an increase in market participation from those who may not have considered entering the market, who are now holding positions.
This gives way to investment opportunities in traditional markets to a whole new generation that may otherwise have not looked into market participation"
Morgan believes that ethical investment opportunities in companies who have solid ESG frameworks and policies is where the smart money will be in the future.
ESG (environmental, social, and corporate governance) is a method of assessing a company's commitment to societal goals that extend beyond its primary purpose of making money.
“There’s also a turning point now with the new Labour government. I think there’s a new excitement here in Australia, with the government now going to really focus on ESG, climate change and renewables, as opposed to just the landscape in terms of policies.”
Morgan McGuire, Equities Trader, Barclay Pearce Capital.
Morgan says:
At Barclay Pearce, we recognise there is a huge shift towards ESG investment, and so we’re also shifting towards that in terms of the businesses that we support – whether it be capital raises or IPOs.
Read the full Stockhead article here.
Morgan's Pre-IPO stock recommendations
Synergen Met
Synergen Met is an Australian-owned and operated business made up of a team of scientific minds with more than 80 years of collective experience working within the global resources industry. Founders, Christopher Dunks and Dr Geoff Duckworth, have developed the Company’s Thermal Plasma Technology over the last 14 years.
H2X
H2X Global is an automotive and power unit company focused on absolute sustainability. The company is focused on harnessing the most efficient and effective technologies, with the onus on capturing free and renewable energy sources.
A specialisation in hydrogen is the basis of H2X’s growth, however, with a strong platform as a maker of electrically powered vehicles, the company has a versatile approach to finding the right vehicle for the right task. H2X Global has operations in Australia, Malaysia, India, and throughout Europe.
Infinite Green Energy Limited
Infinite Green Energy is an Australian-based renewable energy company with a vision to become Australia’s 1st commercial green hydrogen producer.
Green hydrogen is a future renewable energy source with the CSIRO estimating the size of the green hydrogen economy in Australia to be $10B by 2040. The Company is facilitating Australia’s first, and one of the world’s largest, commercial-scale green hydrogen projects - Arrowsmith Plant based in WA.
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