Women could add $4.5tn into global investments if barriers are removed

By Jon Bragg

February 11 2022
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Women could add billions to Australian investments and trillions to investments globally.

New research from BNY Mellon Investment Management has found that there would be at least an additional $47 billion more in assets under management in Australia and US$3.22 trillion ($4.5 trillion) more globally if women invested at the same rate as men.

The firm’s research looked at the barriers that prevent higher levels of female investment participation and surveyed 8,000 individuals across 16 markets, including Australia.

Only 27 per cent of Australian women said they feel confident about investing some of their money, and 50 per cent said investing in the stock market was too risky for them.

Disposable income was identified as a key barrier to female investment.

Forty-nine per cent of women in Australia said that having more disposable income would influence their investing, and on average, they said they would need a disposable income of $3,777 a month before investing any of it.

“Looking at the research, it’s clear that increasing women’s participation in investment is critical for their personal prosperity and to help shape a more equitable future for all,” said BNY Mellon Investment Management chief executive Hanneke Smits.

“Doing so will also potentially help increase the allocation of capital for the benefit of society and the environment.”

BNY Mellon IM found that women were more likely to make investments that have positive social and environmental impacts, which could drive an extra $25 billion into responsible investments locally and $2.6 trillion globally if women matched the investment levels of men.

The majority of Australian women said they would start investing, or invest more, if the impact of their investment aligned with their personal values (64 per cent) and if the investment fund had a clear goal or purpose for good (58 per cent).

Seventy-four per cent of female investors in Australia plan to rely on returns to support them later in life.

Turning to the investment industry, BNY Mellon IM found that 85 per cent of the 100 asset managers surveyed said that their default investment customer, or the individual they automatically target with their products, is a man.

Seventy-three per cent said they believed that more female fund managers would help engage more women to invest, but half of the asset managers said that women made up 10 per cent or less of their fund managers and investment analysts.

“Inclusive investment means ensuring the investment industry is accessible to all. BNY Mellon Investment Management is committed to doing our part to engage women more effectively,” said Ms Smits.

“We will be using the insights from this research to ensure meaningful change takes place. By doing this, we also hope to promote the investment management industry as an attractive career option for women.”

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