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At Denominator, we've previously explored the impact of the Great Wealth Transfer on the investment landscape. Building upon our earlier insights, we've now compiled a comprehensive report that synthesizes data and perspectives from the most prominent research on the topic. This holistic analysis provides a multifaceted view of how the impending transfer of more than USD 100trillion transfer from baby boomers to NextGen & women is set to reshape wealth management.
By 2030, women are projected to control 66% of U.S. wealth, a substantial increase from 33% in 2020. This shift is primarily due to women's longer life expectancy and the intergenerational transfer of wealth. Simultaneously, Millennials are poised to inherit $46 trillion, marking the largest generational wealth transfer in history.
Understanding the new investor demographics
The incoming generation of investors differs markedly from their predecessors. A 2025 survey by the Morgan Stanley Institute for Sustainable Investing revealed that 99% of Gen Z and 97% of Millennials are interested in sustainable investing. Furthermore, 68% of Gen Z and 65% of Millennials allocate more than 20% of their portfolios to investments with positive social or environmental impacts. Younger investors not only allocate more to sustainable investments but also plan to increase these allocations at higher rates than older generations. Over 90% say they would choose an advisor or platform based on the quality of sustainable investing options.
Women investors also exhibit distinct financial behaviors. According to McKinsey, women are more likely to focus on long-term financial security, impact-driven investing, and comprehensive financial planning. UBS notes that women face unique financial challenges, such as longer life expectancy and career breaks for caregiving, necessitating tailored financial strategies.
Also, as mentioned in previous entries in regards the wealth transfer, Ida Liu, former global head at Citi Bank, highlighted in an interview in Davos that women are twice as likely as men to prioritize investments that reflect their personal values.
The Imperative for purpose-driven investments
Traditional investment models may no longer suffice. Younger investors and women are seeking portfolios that align with their personal values and social concerns. This trend underscores the importance of purpose-driven investments.
“I now more often sit in front of a woman or a younger HNWI compared to earlier. I know they will be meeting a competing wealth manager after me. We are both fighting to win their trust. Today, that trust isn’t won through traditional gestures like a fine dinner or a bottle of wine. Especially not if the other wealth manager can offer investments tailored to the individuals values and beliefs.” – Anonymous Wealth Manager of large US financial institution.
Denominator's granular data enables wealth and asset managers to develop tailored investment products that meet this demand. For instance, in gender-focused investments, Denominator's data goes beyond board-level female representation to include factors like women in executive roles, gender pay gaps, maternity leave policies, and anti-harassment measures.
We see 3 main investment management areas where there is a growing demand for granular investment data:
1. Portfolio analysis
2. Sustainability/ESG methodology
3. Stewardship & engagement
Portfolio analysis
Investment managers use Denominator's data to construct portfolios that align with client mandates while identifying risks and opportunities related to human capital management, contributing to both downside risk protection and potential long-term value generation.
DenominatorAnalyzer allows you to analyze funds, investment or supply chain portfolios on selected social dimensions compared to the benchmarks of your choice via simple dashboards.
Sustainability/ESG Methodology
Denominator’s global methodology uniquely provides locally contextualized assessments of diversity and other social metrics, addressing a longstanding gap in the ESG landscape. By integrating these insights, investors can overcome the constraints of one-size-fits-all approaches to ESG scoring. This allows for more nuanced, geographically sensitive investment strategies that are better aligned with market realities and client demands.
Stewardship & engagement
Denominator’s data enables stewardship teams to craft data-backed engagement strategies that focus on specific areas for improvement, such as workforce diversity or labor and human rights practices. These strategies form the foundation for meaningful interactions with portfolio companies through peer benchmark studies, helping managers drive change.
DenominatorAnalyzer & DenominatorBenchmark allow investors to develop data driven engagement strategies, that base engagements in peer benchmarks, and create detailed, data-driven reports for clients.
Download the full report below to learn more about our solutions.
Risks and opportunities for wealth managers
The Great Wealth Transfer is not just a financial event; it's a transformation in client expectations. Data indicates that around 70% of heirs are expected to change wealth advisors during the wealth transfer. This statistic highlights the risk for current market leaders who fail to adapt to the evolving preferences of women and NextGen investors.
To remain competitive, wealth managers must offer personalized, value-aligned investment strategies. This includes integrating ESG factors, understanding clients' social concerns, and providing transparent reporting on investment impacts.
Leveraging data for personalized investment strategies
Denominator's platform provides detailed data and performance metrics on dimensions such as gender, disability, race and ethnicity, and sexual orientation across global equities and fixed income. This level of granularity enables wealth managers to create genuinely personalized strategies that resonate with clients' values.
By adopting such data-driven approaches, wealth managers can better understand and meet the unique needs of women and NextGen investors, fostering trust and long-term client relationships.
Conclusion
The Great Wealth Transfer is reshaping the landscape of wealth management. As trillions of dollars move into the hands of women and younger generations, the demand for purpose-driven, personalized investment strategies will only grow.
While many wealth managers continue to rely on personal relationships, events, estate planning, and advisory services to stand out, these approaches are no longer sufficient on their own. Financial returns, often emphasized in every pitch, rarely serve as a true differentiator—since most firms claim to deliver the best performance.
Denominator introduces a new layer of differentiation that connects directly to the personal values and lived experiences of investors.
Our platform provides detailed data and performance metrics on dimensions such as gender, disability, race and ethnicity, sexual orientation, and more—across global equities and fixed income. This level of granularity enables wealth managers to create genuinely personalized strategies, far beyond traditional ESG exclusions like tobacco or carbon emissions.
Embracing this shift is cost-effective as the investment required to adapt is minimal compared to the risk of losing existing clients or failing to attract the next generation.
Download the report below and gain insights into how granular human capital data helps firms keep - and win - the next generation of investors.
