Natasha Narsingh, Chief Executive Officer at Sanlam Investment Management
At a recent Sanlam Investments event, Critical Conversations, 21% of polled participants said their investments align with their personal values and sustainability goals.
Panel member Dion Chang, founder of Flux Trends, said that this percentage is only going to increase as the Gen Z client comes to the fore. Energised by social justice, this generation is ethics-oriented and likely to invest deliberately, with the goal of using their money to mobilise social impact and sustainability.
This Savings Month, Sanlam Investments experts speak to how Gen Z can prioritise values in investment decision-making to generate robust social and financial returns for the long term.
Be deliberate and engaged with how you invest
Paul Wilson, Chief Investment Officer for Sanlam Investments Multi-Manager, says, “Know which causes matter to you most and find out how you can support these, while building your wealth.” Wilson suggests being actively engaged in pushing for a portfolio that generates sustainable impact. This means mindfully selecting investment options that align with the ways you’d like to change the world.
Pawan Singh, Head of Alternatives: Multi-Strategy at Sanlam Investments, adds, “If you are passionate about job creation, consider investing in small and medium-sized enterprises (SME) financing or if climate mitigation is what matters to you, invest in a product that finances renewable energy projects.”
Consider reading the United Nations Sustainable Development Goals (UN SDGs) for inspiration on causes to champion.
Use Open AI carefully
Teboho Makhabane, Head of ESG and Impact at Sanlam Investments, advocates for constant research. “Do research to guide you on which companies and funds prioritise environmental, social and governance (ESG) factors. These can be companies that support businesses that have strong sustainability practices, promote social equity, and demonstrate responsible governance.” Open AI could be a powerful ‘ally’ to collate this kind of information quickly, giving instant insight into a company’s ESG credentials and performance.
Build a portfolio that reflects your values
“Sustainable investing is the future and it is here to stay. Always understand what you’re investing in, it can be very rewarding when you actively invest with intention, says Natasha Narsingh, Chief Executive Officer at Sanlam Investment Management. “There doesn’t have to be a trade-off – ESG investing can achieve both a measurable social and environmental impact as well as attractive returns.”
Gen Z also need to seek out asset managers whose values align with their own. Sanlam Investments is committed to driving maximum impact through smart investment. Gielie de Swardt, Head of Retail Distribution at Sanlam Investments, says, “Investors are moving away from traditional investment styles and seeking out alternative areas of wealth. We (asset managers) need to adapt accordingly.”
Sanlam Investments is passionate about empowering Gen Z clients to invest with confidence in the causes they care about.