“We want to champion the power of investing, and the power of female investment, in order to demonstrate that inclusivity and diversity matters—and that the time to act is now.” Hanneke Smits, CEO, BNY Mellon Investment Management.
The 2021 report The Pathway to Inclusive Investment was compiled from 8,000 interviews with women and men, 100 asset management firms representing assets of US$60 trillion, and an independent advisory panel. The report found that if women invested at the same rate as men, an extra $3.22 trillion could become available for investment.
What is stopping women from investing?
- Engagement. Only 28 percent of women worldwide feel confident about investing. This varies with different countries and cultures and with age. Data suggests that younger women are more engaged with investing.
- Income. Globally, women believe that they need almost $50,000 a year of disposable income before they invest any of that money. In the US, that amount is even higher.
- High risk.There is always some risk in investing, but 45 percent of women believe that any investment is too risky.
We know that women are more likely to invest in causes that they believe in and are motivated by the impact that their investments make. 55 percent of women say they would invest (or invest more) if the impact of their investment aligned with their personal values.This is particularly so with young women investors (under30) who see their money as a powerful force for good.
More women investing might change the world!
So many things have changed over the last few years but some industries such as the investment industry are slow in moving along. It’s time to move the focus from a male audience to a diverse one, and to find a way to reach women, with their different motivations. Giving women financial power and control over their wealth will benefit everyone.