Advisors working with female clients and those hoping to attract more female clients may want to consider some of the findings from a new survey on female investors released by Capital Group, the parent company of American Funds.
“American women are a powerful economic force with $11 trillion of assets,” said Heather Lord, senior vice president and head of strategy and innovation at Capital Group, in a statement. “Women are a complex and varied group of investors, and they have a clear vision for their investing goals.”
(Related: Why Women Make Great Investors)
The survey of 1,200 women divided evenly among three generations — millennials, Gen Xers and boomers — found that 9 in 10 are confident they have the knowledge to make good financial investment decisions but only 44% consider themselves an equal partner in the investment decisions of their households.
Moreover, 8 in 10 reported that they experienced being stereotyped as someone who knows little or nothing about investing, makes no money or less money than their partner, isn’t the financial decision maker in the household or is more focused on household expenses.
The survey also compared investment preferences between women and men. While close to one-third of women (30%) and men (33%) preferred a mutual fund with a track record of beating the stock market over time, many more women than men viewed social responsibility as a key variable when choosing companies for their portfolios.
“More than men, women want to invest in companies that are not only financially successful but also deliver economic and social benefits,” said Lord.
Eighty-four percent of women, for example, said it was important for the companies they invest in to promote the health and wellness of consumers and employees vs. 70% of men. Even bigger differentials related to investments in disadvantaged communities and in the roles women play in corporate management and on corporate boards.