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March 14, 2017

Advisers need to target female investors to increase assets under management

No matter where your advisory practice is in the world, you will find that most HNW individuals are male. However, this is bound to change. The number of female millionaires is fast increasing and customising the service proposition to target this growing segment is a great opportunity for wealth managers to grow their assets under management, according to GlobalData Financial Services

By GlobalData Financial

No matter where your advisory practice is in the world, you will find that most HNW individuals are male. However, this is bound to change. The number of female millionaires is fast increasing and customising the service proposition to target this growing segment is a great opportunity for wealth managers to grow their assets under management. 

 

No matter where your advisory practice is in the world, you will find that most HNW individuals are male. According to GlobalData’s WealthInsight, women represent only 11.4% of millionaires globally. Europe performs slightly better than the global average, with 12.2% of HNW clients being female.

Among countries covered in GlobalData’s HNW Investors reports series, the countries with highest share of female millionaires are Hong Kong and Singapore. On the other hand, the UAE and Belgium are the worst performers, with only roughly 5% of HNW individuals being women.

However, this is bound to change. In fact, many governments are issuing new policies encouraging women participation in the business arena and helping them generate fortunes.

Some examples include Belgium’s law of 28th July 2011, and the UAE’s Gender Balance Programme. By 2020 these policies are supposed to see their first results.

Customising the service proposition to target this growing segment is a great opportunity for wealth managers to grow their assets under management (AUM).

Some providers are already putting into place new measures to target female clients. As UBS expects global wealth of women to grow from $13tn to $18tn by 2021, the company has just launched a five-year business plan that puts attracting female HNW investors as a priority.

The robo-advisor industry is also targeting women, with Ellevest and WorthFM offering service specifically tailored for female investors.

Training relationship managers so that they better understand and meet the needs of their female client base is just one step advisory firms should take.

Another factor is tailoring investment products and services so that the behavioural differences between male and female investors are taken into account. Providers who will champion both are likely to be successful.

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