Millennials distinguished themselves from the general investing public in a recent study, and much of it was revealed their appetite for environmental, social and governance-oriented products and advice.

This past year, younger investors separated themselves even more from their older counterparts in how and what their priorities are. The most significant point of differentaition was their interest in environmental, social and governance, according to the J.D. Power 2021 U.S. Full-Service Investor Satisfaction Study.

Millennials are poised to inherit more than $68 trillion in wealth from their boomer parents during the next decade, according to consumer researcher J.D. Power in its 2021 Full-Service Investor Satisfaction Study, and full-service wealth management firms should have a vested interest in tailoring their services to the demands of these younger investors.

More than half of investors under 40 who strongly agree that their advisory firm is committed to ESG efforts plan to increase their investment with that firm, said the study, which included 4,392 investors who make some or all their investment decisions with a financial advisor. The number falls to 24% among investors over age 40.

Mike Foy, senior director of wealth intelligence at J.D. Power, said younger investors are changing much more quickly in terms of their wealth management preferences and priorities, and they look increasingly different from boomers.

“Not only has the pandemic significantly accelerated their shift to more digital engagement, but emerging issues like ESG are also a major priority for them that isn’t seen as much yet among boomers. Wealth management providers are making a mistake if they assume that the emerging affluent investors will simply evolve into boomers over time. Firms with the ability to recognize and address these changing needs will define success through the great wealth transfer,” Foy said in released comments.

As for fees and payment models, the survey found that younger investors are more attracted to one-time fee-for-service and subscription-payment models. Nearly three-fourths (74%) of investors under age 40 say they would prefer to pay for full-service wealth management via a one-time fee-for-service model; followed closely with 73% indicating that they support the subscription model. By contrast, among full-service investors age 40 and older, just 42% support a fee-for-service model and 34% support a subscription model.

When it came to overall investor satisfaction, Edward Jones came out on top with a score of 770 out of 1,000. Stifel ranked second with 760, and Fidelity, RBC and UBS tied for third with 751. Merrill Lynch, Advisor Group and Prudential finished at the bottom of J.D. Power’s ranking.  

The U.S. Full-Service Investor Satisfaction Study measures overall investor satisfaction with full-service investment firms across seven factors: trust; people; products and services; value for fees; ability to manage wealth how and when they want; problem resolution; and digital channels. It was fielded from December 2020 through February 2021.