The growing force of women in wealth management

This new publication offers a review and outlook of financial markets and will provide regular, practical information on various investment fields, including building knowledge in areas such as sustainability and private assets.

Read also: Lombard Odier survey on women and investing

Women’s share of global financial assets is increasing rapidly. Firstly, there are more women in the workforce than ever before. The female labour force participation rate in the US for those between 25 and 54 years old is at an all-time high (77.8%), according to the Bureau of Labor Statistics. In Switzerland, the participation rate of women is lower (62.6%) but the gap with that of their male counterparts has narrowed in the past decade. There has also been a significant increase in the share of women in the upper echelons of management. For example, 44% of US companies have three or more women in their C-suite of executive level managers, up from 29% in 2015 according to McKinsey’s 2019 Women in the Workplace survey.

Women’s share among entrepreneurs is also rising, and BCG finds that women are adding USD 5 trillion to the wealth pool globally every year—faster than in years past. While women in North America hold the greatest volume of assets (USD 35 trillion), Western European women are estimated to hold USD 14 trillion, followed by women in Asia excluding Japan (USD 13 trillion). Women’s wealth in the Middle East amounts to almost USD 800 billion, 13% of total wealth in the region, with BCG predicting that this could reach USD 1 trillion by 2023. In short, women are a powerful force in wealth management and will become even more so in coming years.

Many countries with ageing demographics are also on the brink of one of the largest wealth transfers in history. This is expected to occur within the next five to ten years, with Baby Boomers passing on their wealth to spouses and the next generation. Women are likely to benefit disproportionately due to their longer life expectancy than men, and the dual inheritance many receive—from both their parents and later from their life partners. This reinforces the wealth accumulation women drive themselves through their increased participation in the workforce and their career progressions.

What we learnt from our LO Women and Investment Survey 2023

On frequency of engagement: Among the many insights shared by our women investors across three regions surveyed in 2023 (Switzerland, France and Belgium), a majority said they check the performance of their portfolios on a quarterly (40%) or monthly (30%) basis. 10% check their portfolios weekly and another 10% annually.

On nature of engagement: While a quarter of respondents said they manage their assets with the help of an advisor and another quarter do so completely independently, a third place their trust in their bank. A majority expressed their desire to delegate the management of their assets to a financial professional.

On sustainable investments: Nearly 60% of these regions’ women investors favour sustainable investments where possible and 51% expect these to deliver a similar performance to traditional investments. However, 39% feel they lack regular and reliable information with respect to sustainable investments and specific investment proposals, which prevents them from investing more sustainably.

Read also: Do women investors think differently to men? | Lombard Odier

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