Growing number of HNW women an opportunity for advisers

According to “The Growth of Women and Wealth”, a recent white paper published by JBWere, a subsidiary of NAB, and developed in conjunction with CoreData Group, high-net-worth women are becoming more confident investors and looking to engage with a team of supportive financial services to meet their needs.

Highlighting womens’ growing confidence within the investment space, the research showed that one in five HNW women, 21 per cent, identified as an aggressive investor and 100 per cent felt they had a moderate or good knowledge of the relationship between investment risk and return, surpassing HNW men on both counts.

According to in-depth interviews with HNW women and CoreData’s syndicated research, Australian HNW women were mostly invested in real estate (63 per cent), Australian shares (59 per cent), and cash (51 per cent).

Speaking on these findings, JBWere added that “about one-quarter of their investments were held in alternatives and this is an opportunity for advisers to forge stronger relationships with clients”.

Maria Lykouras, JBWere Australia chief executive, noted how advisers play a key role in facilitating HNW women’s financial goals, and the research findings showing that women often look to advisers for support when making important financial decisions.

“We found that three in five HNW women (62 per cent) already have an ongoing relationship with a financial adviser and are most likely to engage when they feel they need support for their investments or when receiving an inheritance,” she said.

“Advisers play a crucial role in empowering already confident women to take the next step with their investments. Women often rely on their adviser as a critical source for information and to provide options that match with their risk appetite and future financial direction.”

Women are increasingly looking to access financial support, Lykouras said, accessing a wide variety of financial service providers for a holistic approach.

“More than ever, women are taking charge of their finances and are seeking to be actively engaged with their investment portfolio,” she said.

“Women value a holistic approach to their overall financial situation – which includes support from their bank, lender and other finance professionals to provide the complete picture.”

According to Lykouras, women were not always afforded the same investment opportunities as men despite women being just as confident in navigating investing in financial markets.

“When HNW women seek investment advice, we know that they’re wanting to see a range of different investment options across both traditional and non-traditional assets and not be pigeonholed into products considered to have less risk,” she said.

“The research tells us that it’s a deal-breaker for women if their financial adviser doesn’t capture the full financial picture and tailor investment solutions appropriately.”

A number of contributing factors have led to women accumulating higher wealth and assets, Lykouras said, and increased the demand for advisers to meet the needs of HNW women.

“The cohort of HNW women in Australia is growing at a faster pace than men with increased workforce participation and surging female entrepreneurship,” she said.

“And with women across Australia set to take charge of the intergenerational wealth transfer, the demand for high-level support from advisers will be critical to shaping the financial future for thousands of Australian women and their families.”