The rising influence of women as a fast-growing investor segment

Women’s share of global financial assets is rapidly increasing, and their influence is reshaping the investment landscape as we know it. As more wealth managers aim to attract and serve women investors, who are increasingly aligning their portfolios with personal values, the impact of this shift will be felt across the investment industry and beyond.

Women, the labour workforce and enterprise

Women now make up a larger portion of the workforce than ever before.

In the UK, 72.1% of women were part of the labour force in late 2023, according to the Office for National Statistics (ONS). Additionally, women led 18% of small and medium-sized enterprises with employees in 2022 (UK Government’s Small Business Survey).

Around 30% of the world’s private wealth is held by women, according to Boston Consulting Group. Women are a fast-growing investor segment as their participation as entrepreneurs, in executive level positions and via inheritance gathers in pace.

Women’s representation in leadership roles is also growing. As of January 2024, women held 42.6% of FTSE 100 and 42.1% of FTSE 350 directorships, with nearly half of new FTSE 100 board appointments being women. In the U.S., female participation in the workforce for ages 25-54 is at a record high of 77.8%, and Switzerland has seen the gender gap in workforce participation narrow significantly over the past decade. Globally, there’s been a notable rise in women in executive positions, with 44% of U.S. companies having three or more women in C-suite roles, up from 29% in 2015 (McKinsey’s Women in the Workplace survey).

Are the number of women investors on the rise?

The number of women investing is growing, but the increase has been slow and from a low base. The Financial Conduct Authority (FCA) reported that 13% of women held a stocks and shares ISA in 2022, up from 11% in 2020. This compares to a 4 percentage point increase among men, from 18% to 22%.

While the average investable assets held by women (excluding pensions) rose from £28,000 in 2020 to £34,000 in 2022, it still lags behind men, who held an average of £52,000.

Sarah Coles, Head of Personal Finance at Hargreaves Lansdown, notes a cultural shift:

“Two-fifths of women say society often presents investing as something for men. Although there is still a long way to go, we are seeing a generational shift in this kind of view, with 87% of women agreeing we’re more empowered to make decisions about our finances and investments than previous generations”,

(Forbes, 2024).

What is the gender investing gap?

Despite more women investing, the gender investing gap—a disparity similar to the gender pay and pensions gaps—remains significant. The gap between what men and women invest is estimated at £567 billion in the UK (Boring Money, January 2024), with pensions making up a large portion of this difference. FCA data highlights a pronounced divide: 46% of men are likely to invest compared to just 29% of women.

Are women more ‘sustainable’ investors?

Sustainable investing is notably popular among women, with nearly 60% preferring sustainable investments when possible, and 51% expecting these to perform on par with traditional options. However, 39% feel they lack regular and reliable information with respect to sustainable investments and specific investment proposals, which prevents them from investing more sustainably (Forbes, 2023).

Conclusion

The influence of women in investing is on the rise, driven by their growing participation in the workforce, leadership roles, and an increasing appetite for sustainable investments. While the gender investing gap persists, the trends point toward a closing divide as women gain financial confidence and access to opportunities. As societal perceptions continue to evolve, women’s impact on the investment world is expected to grow, reshaping financial markets and driving a more inclusive future.

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