Wealth Management | Investing in women, an asset in the face of volatility

More and more women are taking an interest in wealth management, and women rely on values ​​that are particularly favorable to long-term management. This is especially true in times of market volatility. Overview of the question with two experts.

Oriented towards long-term objectives and financial security, women have significant assets to grow the wealth accumulated during their professional career.

It’s because Canadian women have more and more means for that. The pay gap between men and women went from 23.9% to 18.2% between 2000 and 2016, according to data compiled by Desjardins Securities. And among taxpayers earning $270,900 or more, the median income for women was 8.5% lower than for men.

Admittedly, there is still a pay gap, but it is therefore tending to narrow between the two sexes. And it decreases particularly among people with high incomes.

However, the more women see their remuneration rise, the more they are interested in the management of their wealth. They are more interested in it than men: 69% of women give high or absolute priority to their finances, compared to 59% among men, according to Desjardins.

“Yes, women have more room to invest, and they are more interested in investing,” confirms Hélène Gagné, portfolio manager at Gagné Johnston Private Management (PEAK Securities), who is pleased to see more and more more women in the sector’s clientele.

And M^me Gagné observes that women investors often have a long-term vision — more so than many men — who demonstrate their interest in the turbulence that shakes the financial markets.

“During periods of market fluctuation, women can more easily return to their long-term prospects and thus maintain their game plan,” analyzes Hélène Gagné. Since they avoid panicking, they avoid the danger of multiplying transactions, a trap into which many investors fall who believe they can avoid turmoil by buying and selling at all costs… but which generates multiple costs that eat away at the performance of the portfolio.

When it comes to investments, “women are more focused on financial security than on prosperity at all costs,” points out Sophie Sylvain, financial planner at Desjardins Wealth Management. Protection appeals to them more than performance and taxation, she notes. This concern explains their caution and their ability to stay aligned with their long-term goals.

Added to these virtues of prudence and patience is a quest for meaning. Female investors tend to favor investments that reflect their concerns and their values. This priority can be seen through their interest in socially responsible investments, observes Sophie Sylvain.

While she is delighted to see women grow their wealth in a wise way, Hélène Gagné would like these qualities to also be expressed in a more female succession among wealth management professionals. “Young women may get the idea that wealth management is all about numbers. However, it is above all relational: we are there to advise and support when things are going well and when things are not going so well, by relying on financial, tax and estate planning”, she underlines, hoping that more women will turn to his profession.