Targeting the female investor: Cerulli report

Advisers should tailor their services differently when dealing with women according to research from Cerulli Associates.

The research highlights that women have different investment strategies and viewpoints than their male counterparts that can often be missed in a joint financial planning situation.

“There is opportunity for providers willing to commit resources to target this unique demographic,” said Shaun Quirk, senior analyst at Cerulli. “Especially as females play more prominent roles in the financial planning process.”

The research explores investor portfolio involvement in relation to gender and found that fewer than one-third of women believe they ‘need very little advice’ when investing, compared with nearly half (49%) of male respondents.

‘Evolving needs of female investors’

“This data can help providers develop strategies to market products and services tailored to meet the evolving needs of female investors,” added Quirk.

“There is a popular belief that men tend to be more involved in the investment process than women. According to our data, almost 60% of male investors surveyed indicate a desire to be actively involved in the day-to-day management of their portfolio, versus just 42% of women.

“Some industry professionals suggest that women are more likely to implement long-term, goal-oriented investment strategies that do not require day-to-day trading. With this in mind, providers can position planning tools and holistic wealth management solutions that align with their female clients’ views on portfolio management.”

Two distinct segments

Cerulli has noticed that there is still relatively little differentiation across firm products and platforms to target female investors. Cerulli believes that financial services providers should “objectively analyze the differences between the two cohorts for perspective” on how to communicate and market products to these two distinct segments in relation to investing and planning for retirement.

Cerulli’s third quarter issue of The Cerulli Edge – U.S. Retail Investor Edition explores what drives female investors, how women can successfully plan for retirement, and the unique challenges the wage gap presents for women.

Gary Robinson
Head of Video and Ezines at Open Door Media Publishing. Deputy Editor, International Investment. An experienced journalist and filmmaker with more than 20 years' financial services experience, both as journalist and originally as a fully qualified IFA, Gary works across both International Investment and InvestmentEurope titles. Previous video production credits include projects on BBC, C4 and SKY.

Read more from Gary Robinson

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