Less than a third of women feel they have the confidence to invest some of their money, prompting calls for the industry to look at how they can better engage and inspire women.
According to research by BNY Mellon Investment Management, globally women believe they need $4,092 of disposable income each month – or $50,000 per year – before investing some of their money.
The research surveyed 8,000 respondents across 16 markets, as well as 100 asset management companies, with combined assets under management of nearly $60 trillion.
The Pathway to Inclusive Investment research found that women are less likely to invest than men, compounding any existing financial disadvantages and limiting women’s collective influence as investors.
It also showed that women want to invest in a way that has a positive social and environmental impact, and that if women invested at the same rate as men there could be more than $3.22 trillion of additional capital to invest globally, with over $1.87 trillion flowing to more responsible investments.
According to the research, 86% of asset managers admitted that their default investment customer – the person they automatically target with their products – is a man.
Nearly three quarters of asset managers believe the investment industry would be able to engage more women to invest if the industry itself had more female fund managers, who could also be important role models.
However, half of the asset managers in the survey revealed that just 10% or less of their fund managers or investment analysts are women.
Anne-Marie McConnon, global chief client experience officer at BNY Mellon Investment Management, said: “As women, we all have different hurdles to overcome to meet our individual financial goals. Some of these are influenced by demographics and personal circumstances but some is a result of how the investment industry has traditionally engaged with women.
“It is in everyone’s interest for more women to invest. Not only will it be good for the future, but also wider society. Pathway to Inclusive Investment emphasizes the traditional stereotype of the person who is interested in investing is outdated. Young women are interested in investing too, but they need to be inspired to do so.”
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