Relatively little differentiation exists across financial services’ products and platforms to target female investors, according to a new report from Cerulli Associates.
The report explores investors’ portfolio involvement in relation to gender, highlighting nuances that exist among women, which can help providers develop strategies to market products and services tailored to meet their evolving needs.
“There is opportunity for providers willing to commit resources to target this unique demographic,” Cerulli senior analyst Shaun Quirk said in a statement. “Especially as females play more prominent roles in the financial planning process.”
The report identifies several instances in which women and men have different investment strategies and viewpoints.
Only 31% of women surveyed said they needed little advice when investing, compared with 49% of male respondents.
Women were also a lot less likely to always look for new investment opportunities and take calculated risks to make money when investing.
Cerulli looked at investor portfolio involvement in relation to gender, exploring the notion than men tend to be more involved than women in the investment process.
It found that 57% of men surveyed expressed a desire to be involved in day-to-day portfolio management, compared with 42% of women.
However, the data also showed that women want to be more involved once they have accumulated more than $1 million in investable assets.
Cerulli said providers may be able to strengthen current and prospective relationships with women by designing information vehicles for them at the point they want to be more involved in managing their assets.
“Some industry professionals suggest that women are more likely to implement long-term, goal-oriented investment strategies that do not require day-to-day trading,” Quirk said.
As a result, some women cede related investment activities, including portfolio allocation and security selection, to an investment professional.
“With this in mind, providers can position planning tools and holistic wealth management solutions that align with their female clients’ views on portfolio management,” Quirk said.