Women’s role in investing
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018 has given voice to some of the key challenges facing women today. Yet one area that sometimes falls by the wayside concerns women’s relationship with wealth.
Some of the issues related to financial inequality between the sexes fall into well-trodden territory. The gender pay gap, balancing family with a career, and women living longer than men have rightly been touted as key causes behind income disparity.
But there are other factors at play. The global economy is changing, and women’s ownership of wealth is changing as a result. After two years of working with our female clients, it’s clear the finance industry can work more closely with women to tailor their client service.
We’ve seen first-hand that female investors frequently view wealth fundamentally differently to men. They often have a desire to use their wealth to create positive change in society and have tended to take less risk when making investment decisions. In turn, they’re less likely to receive the levels of return needed to fulfil their goals.
However, only 2 per cent of wealth managers see women as having specific requirements. Given such ambivalence, it’s little wonder that women are typically less confident then men when it comes to investing and are less likely to seek advice. But such an approach, coupled with little financial advice, can be fatal for your finances. A solid investment strategy is essential in ensuring a stable retirement. Relying on a partner can result in a total lack of preparedness, should an unexpected event take place. We now find ourselves at an inflexion point. As the proportion of wealth held by women continues to grow, it’s imperative that financial control and women’s financial confidence rise alongside it. Encouraging conversations to agree goals and plan accordingly can make all the difference.
The industry has an important role to play in providing this. At UBS, we have expressed a very clear commitment to better serving female clients. Unique, our five-year change programme from UBS Wealth Management, seeks to inspire change in the financial industry and grow the financial confidence of one million women by 2020.
Such ambitious targets amount to nothing without practical, tangible steps. Last year, we trained 30 per cent of our client advisers to reshape our engagement with female clients and have launched an innovative gender equality exchange traded fund . We have also developed an online educational tool designed to help women build their confidence in investing. But there is more to be done. Financial advisers should pay heed to the needs of female investors and ensure they are working hard to meet them. The financial health of half the population cannot – and should not – be overlooked any longer. ● Debjani Raffan is regional head Scotland, UBS Wealth Management