Women could pump £2.2 trillion into global investments if hurdles were removed
New data has revealed that women could add more than $3 trillion (£2.2 trillion) to global investments if the opportunities were levelled and barriers to entry were lifted.
Independent research by asset management firm BNY Mellon, examining global investment behaviours and attitudes, have shown that women would invest more if the investment had a clear purpose and positive impact.
It also revealed that if women invested at the same rate as men (both willing and able to), it could result in an additional $3.22 trillion (£2.4 trillion) of capital being invested globally, much of which would flow towards investments with a positive impact on society and the environment.
The three main barriers that stop women investing are income hurdles, perceptions around investment and engagement risks.
Only nine per cent of women report they have a ‘high’ or ‘very high’ level of risk tolerance when it comes to investing, while 49 per cent have a ‘moderate’ level and 42 per cent have ‘low’ tolerance for risk.
The research found that women are looking for more than just a financial return on their investments – they also want to see a positive impact on society and the environment; encouraging greater levels of female investment could see even more capital flowing to funds with social and environmental goals.
Over half of women (55 per cent) would invest – or invest more – if the impact of their investment aligned with their personal values, and 53 per cent would invest – or invest more – if the fund they invested in had a clear purpose for good.
This is even more pronounced among younger women. According to BNY Mellon, seven in 10 women under 30 who already invest prefer to invest in companies that support their personal values, compared with 53 per cent of women over 50 who invest.
Globally, just 28 per cent of women feel confident about investing some of their money. The industry needs to look at how to better engage and inspire more women to invest, which in turn could increase investment confidence and participation.
Hanneke Smits, chief exec of BNY Mellon Investment Management, said: “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. Doing so will also potentially help increase the allocation of capital for the benefit of society and the environment.”