Broadening the spectrum of investing: Opportunities and demand for investing in LGBTQ+ equity and inclusion
The report emphasises increasing demand for LGBTQ+ equity and inclusion investments in the US, particularly among investors born after 1980. Nearly half of US investors seek such opportunities, but there’s a shortage of investment options catering to this demand. Asset managers could profit by developing products targeting LGBTQ+ equity and inclusion.
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OVERVIEW
Introduction: The case for investing in LGBTQ+ equity and inclusion
The report shows that 45% of US investors, including 86% of LGBTQ+ investors, want opportunities to invest in LGBTQ+ equity and inclusion within a wide range of products and strategies. While ESG investing has grown, there are few investment options focused solely on LGBTQ+ equity and inclusion. The report argues that the potential business case lies in the fact that 21% of Gen Z individuals identify as LGBTQ+. Asset managers and wealth managers can benefit from closing this supply-demand gap by offering investment options in this space.
Opportunities for investing in LGBTQ+ equity and inclusion
The report highlights some thematic investment opportunities by focusing on companies that promote a culture of LGBTQ+ inclusion through employee policies and representation. However, there are very few products and strategies currently available in the market that are solely focused on LGBTQ+ equity and inclusion. The report recommends that asset managers address the unmet demand for these products.
Investor demand for LGBTQ+ equity and inclusion
Investor demand for LGBTQ+ equity and inclusion investment options are increasing exponentially among younger investors. According to the report, the wealth transfer due to younger investors suggests an even greater demand to invest in this space. The report suggests that by providing investment products, asset managers can win or retain business from this demographic.
ESG investing and LGBTQ+ equity
The report states that while ESG investing has grown, there are very few options available in the market focused solely on LGBTQ+ equity and inclusion. The report recommends that asset managers build out products and strategies that are specifically focused on this area, so investors interested in LGBTQ+ considerations can make investment decisions accordingly.
Recommendations for asset managers and wealth managers
The report provides specific recommendations for asset managers and wealth managers to identify market opportunities in the LGBTQ+ equity investment space. Asset managers can offer a range of investment options for interested investors, and wealth managers can incorporate LGBTQ+ considerations into their investment decisions. The report also suggests that philanthropy can be an important tool for supporting impact-driven organisations advancing LGBTQ+ equity and inclusion.
