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The New Face of Wealth

The New Face of Wealth

Thursday 05 May 2022

The New Face of Wealth


MEDIA RELEASE: The views expressed in this article are those of the author and not Bailiwick Express, and the text is reproduced exactly as supplied to us

Female Folio was founded by a team of women at Brooks Macdonald. Together, we have a passion for empowering women on their financial journey.

You might not be surprised to hear that the female population is a growing financial force to be reckoned with as the rising economic force of women is perhaps one of the most significant economic shifts of recent decades:

  • Women are earning and accumulating wealth at unprecedented levels and are expected to hold 60% of global wealth by 2025
  • In 80% of companies and households, it is a female who makes the purchasing decisions and therefore manages day to day budgets

So, when we think about all of the above, it’s clear that women are equally viable investors as men, so why are they not investing their wealth at the same levels as their male counterparts?

Purpose beyond profit

Is the industry getting it wrong in their pitch? Research shows that women often have a holistic view on how their finances translate into various life events and goals rather than products and percentage points.  

Where do you want to live? Would you like to have children? What education do you want for said children? What age and where will you retire? would you like your investments to have an ethical focus? 

These are the sorts of conversations that women want to be having and the industry must be responsive to their desire to anticipate and plan for life events - planned and unplanned. Sitting down and understanding what drives finances in very real-life scenarios is the dialogue that we should be having.

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Pictured: The Female Folio team

Cut the jargon

How can we expect any individual to commit their hard-earned wealth into an investment where little or no understanding has been conveyed to them? Not only is it wrong, it is also unreasonable to expect a client to embark on their investment confidently or with significant sums. 

Research tells us that when women fully understand an investment pitch, their conviction is much higher, their risk tolerance increased and invested sums greater. Investment into the financial markets is smart, but not above the minds of the general population, it is time that the finance industry stopped making it appear that way. 

A women’s financial path is not so smooth

Aside from investing providing support to achieving financial goals and freedom, the list of reasons for women to invest and maximise their wealth is longer than that of men. Women typically meet more financial milestones and challenges in their lifetime which makes the requirement for financial planning and preparation all the more important. The gender pay gap, maternity leave, providing ongoing childcare, and longer life expectancy are the “biggies” and these events often carry with them a financial penalty. 

The intervals taken from one’s career slows the pace of progression, while reduced hours spent in the workplace depletes earning capacity and this has a consequential effect on the investable assets and eventual pension pot. 

Historically financial advice has been provided by men for men but as the world changes and continues to allow a level playing field, advice regarding investments must accommodate for females too. Female Folio has been created to help high net worth women write their investment story; to build knowledge and understanding of investing; to listen and start positive and open conversations around female investment. 

To be clear, we are not suggesting that the solution is as basic as putting a female advisor in front of a female client, this is insulting to both parties. It is the approach, the conversation and the messaging that needs to change and become more balanced in its response to requirement from a gender perspective. At Female Folio by Brooks Macdonald, we listen intently to women’s financial aspirations to ensure that your investment story is written to suit you. 

Come and meet the Female Folio team, while browsing female-founded brands over champagne and canapés. This will be an opportunity to get to know us, meet like-minded women and explore your future investment story. See here for more information, or to register for our first ever networking event! 

By Phoebe Chamier, Senior Investment Manager, Brooks Macdonald International

 

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Email: investment@femalefolio.com

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