Advisers to leverage opportunity in HNW female investors: AUSIEX

New data from AUSIEX has confirmed the opportunity for financial advisers to better address the needs of the the rising number of wealthy women investors.

According to the most recent ASX Australian Investor Study released in June 2023, females accounted for 50 per cent of the 1.2 million net new investors counted since 2020.

AUSIEX said financial advisers can capitalise on the differences in investment goals and tastes between male and female investors.

“For instance, women in Australia supported by an adviser tend to hold more direct equities than their male advised counterparts, according to AUSIEX data from May this year,” a statement from the online trading and investment service provider said.

“While their actual shareholdings tend to broadly mirror that of men in terms of specific holdings and sector allocations, they hold a greater proportion of consumer staples, financials and industrials compared to their male counterparts, according to AUSIEX data.

“In addition, they tend to also have lower holdings (by value) in exchange traded funds (ETFs). Those that do were buying in the year to May 2024 were buying global equity ETFs, followed by Australian fixed income ETFs and general Australia-focused ETFs.

“The research also showed that female investors appeared slightly more inclined towards ESG [environmental, social and governance] investing in their ETF holdings, making this a potential theme through which to engage clients and a consideration when constructing client portfolios.

“In terms of diversification, the analysis also found advised female clients held a lower number of unique securities in their portfolios on average than their male counterparts. Portfolios were also more concentrated in single stocks than male accounts, with their largest individual holding comprising a larger proportion of their portfolios value on average.”

The research also suggested different trading preferences between male and female investors, with advised women investors aged 25 to 49 years trading more in ASX20 stocks taking up 56.94 per cent of their portfolio holdings compared to 47.91 per cent of advised male investors.

AUSIEX noted that it is important for financial advisers to “maintain strong relationships with their clients’ families” to “ensure continued engagement with younger clientele”.

“Achieving [different investment goals] can of course be particularly challenging for women who take career breaks to raise children or care for aging parents,” the statement said.

“Advice on how to deal with lower earnings and superannuation balances in comparison with their male counterparts can be topical and important at these life stages.

“This support would not only help Australian women better manage their finances, but also help set up their future generations to prosper, while also benefiting the practice longer term through client retention.”