Meeting the Needs of Female Full-Service Investors

The ‘value’ of female investors is growing. As the percentage of females graduating college and opening small businesses increases, so does the proportion of America’s investable assets held by the female population. For investment advisors and firms, their ability to satisfy the unique needs of female investors will help them capture a greater share of the investable assets held by the female population.

Data from the 2014 J.D. Power U.S. Full-Service Investor Satisfaction Study helps to identify some underlying characteristics of female investors. For example, women investors tend to place more value on a ‘trusting’ relationship with an investment advisor, and are more likely to collaborate closely with their investment advisor.

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Data also indicates that women investors are more ‘critical’ of advisors that fail to engage them in discussions regarding their investment goals, strategies and performance. For example, when an advisor fails to fully educate a client on their investment portfolio, the negative impact^ on satisfaction is significantly greater among females than males (-104 vs. -76, respectively, on a 1,000-point scale).

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Key takeaways for investment firms and advisors and to consider:

-Firms need to review the way they recruit, train, team and incent advisors to better align with behaviors that will drive stronger long term client relationships with an increasingly diverse set of financial decision makers

– Advisors need to be proactive in developing a meaningful dialogue with women clients to establish personal goals and provide a clear ongoing understanding of how performance connects with those goals

 

^ ‘Impact’ is defined as the difference in satisfaction when the service best practice is met vs. not met

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