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Coronavirus responseby generation:Gen Z, millennials, Gen X and boomersMike Van WykVice President, Customer Research & Insights

Paul CieslikSr. Vice President, Advisor Practice Management

Investments are not FDIC-insured, nor are they deposits of or guaranteedby a bank or any other entity, so they may lose value.© 2020 Capital Group. All rights reserved. Slides intended for exclusive use with webinar presentation. Not for distribution.

Volatility2020.comMFGEBR-138-0520 8260-S76726

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3

56–74 years old70 million

Baby boomers

24–39 years old74 million

Millennials

40–55 years old66 million

Gen X

23-years-old and younger74 million

Gen Z

3Source: Source: U.S. Census Bureau, 2018.

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4For financial professionals only. Not for use with the public. © 2020 Capital Group. All rights reserved.

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Market performance vs. working yearsAdult working and investing lives of four generations of Americans

Source: S&P Indices, December 2019.

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20%

30%

40%

50%

60%

70%

80%

90%

100%

3/10 3/11 3/12 3/13 3/14 3/15 3/16 3/17 3/18 3/19 3/20 3/21 3/22 3/23 3/24

Are the generations that different?

% making change to social life MillennialsGen XBoomers

Source: Capital Group Investor Weekly Consumer Reaction to Coronavirus Crisis, 2020.

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20%

30%

40%

50%

60%

70%

80%

90%

100%

3/10 3/11 3/12 3/13 3/14 3/15 3/16 3/17 3/18 3/19 3/20 3/21 3/22 3/23 3/24

Are the generations that different?

% stocking up MillennialsGen XBoomers

Source: Capital Group Investor Weekly Consumer Reaction to Coronavirus Crisis, 2020.© 2020 Capital Group. All rights reserved. © 2020 Capital Group. All rights reserved.

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70%

75%

80%

85%

90%

Millennial Gen X Boomer

Are the generations that different?

% expecting long-term negative market impact

Source: Capital Group Investor Weekly Consumer Reaction to Coronavirus Crisis, 2020.

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What annual return do you expect from now to retirement?

Source: Capital Group Investor Generational Attitudes Study, January 2020.

8%

Baby boomers

10%Gen X

12%

Millennials

23%

Gen Z

JANUARY 2020

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Source: Capital Group Investor Generational Attitudes Study, March 2020.

What annual return do you expect from now to retirement?

MARCH 2020

7%(–1%)

Baby boomers

10%(flat)

Gen X

15%(+3%)

Millennials

26%(+3%)

Gen Z

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Goals revisited

JUNE 2019 vs. MARCH 2020

Stable(retirement

stage)

Baby boomers

Emergency Fund,

Retirement

Gen X

Emergency Fund,

Pay off Mortgage

Millennials

Basics(starting

out)

Gen Z

11

Source: Hearts & Wallets Study; June 2019 and March 2020.

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Moment of truth

June 2019 March 2020

50% 66%

Source: Hearts & Wallets Study June 2019 and March 2020.

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Volatility is crystallizing investors’ opinions about advice.

% with an opinion* “professional advice is worth paying for”

*either positive or negative

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1313

Client conversation framework

Acknowledge:Empathize, listen and identify

Perspective:Share and educate

Confidence:Prioritize client goals

Opportunity:Give action steps

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Cross-Generation

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PARENT

Boomer

Gen X

CHILD

Millennial

Gen Z

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Financial lessons given and received

Parental lessons given Children lessons learned

FINANCIAL BASICS BOOMERS GEN X MILLENNIALS GEN Z

“Rainy day” savings

YES NOBudgeting

Earning money

Managing spending

INVESTING BASICS

Understanding investments NO YES

WEALTH TRANSFER

Trusts

NO NO YESWhat to do with inherited assets

Source: Capital Group Investor Generational Wealth Transfer Study, February 2020.

© 2020 Capital Group. All rights reserved.

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Advisor’s role

Do you have a financial advisor?

35%

Baby boomers

28%

Gen X

22%

Gen Z

38%

Millennials

Source: Capital Group Investor Generational Wealth Transfer Study, February 2020.

17© 2020 Capital Group. All rights reserved.

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Advisor’s role

Would you work with your parent’s financial advisor?

38%Gen X

55%

Gen Z

62%

Millennials

Source: Capital Group Investor Generational Attitudes Study, January 2020.

18© 2020 Capital Group. All rights reserved.

1919

Importance of alignment: Family wealth briefing

Family harmony can help foster preservation and growth of assets

Supports continuity of management across generations and through transitions

Communication and transparency foster realistic expectations and authentic relationships

Enables a cohesive and unifying family legacy that can stand the test of time

© 2020 Capital Group. All rights reserved.

2020

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