A Question of Gender

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Written by the Economist Intelligence Unit on behalf of Barclays Wealth, this report examines the relationship between wealth and gender, and explores differences between the attitudes of women and men to wealth matters.
Our first report, The Future of Wealth 2006-2016, emphasised the unprecedented levels of growth in global wealth. A Question of Gender, the second chapter in our Barclays Wealth Insights series, endeavours to bring greater understanding and scholarship to what being wealthy means in the 21st century.
It is based on three main strands of research: a global survey of around 600 affluent, high net worth and ultra high net worth individuals; a series of indepth interviews with experts on wealth and gender; and a number of case studies of leading female entrepreneurs and business women. Our thanks are due to the survey respondents and interviewees for their time and insight.

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A Question of Gender

  1. 1. Barclays Wealth Insights Volume 2: A Question of GenderIn co-operation with the Economist Intelligence Unit
  2. 2. About Barclays Wealth ForewordBarclays Wealth is the UKs leading wealth manager and has £93bn (US$184bn) client assets globally. It serves affluent, high net At Barclays Wealth we constantly seek to understand our clients’ evolving needs and aspirations. In partnership with the Economistworth and intermediary clients worldwide, providing international and private banking, financial planning, investment services and Intelligence Unit, we are encouraging industry debate on how to meet our clients’ changing circumstances and desires.brokerage. Thomas L. Kalaris is the Chief Executive of Barclays Wealth and he joined the business at the start of 2006. Our first report, The Future of Wealth 2006-2016, emphasised the unprecedented levels of growth in global wealth. A Question ofBarclays Wealth is part of the Barclays Group, a UK-based financial services group, with a large international presence in Gender, the second chapter in our Barclays Wealth Insights series, endeavours to bring greater understanding and scholarship toEurope, Middle East, the USA, Africa and Asia. Barclays has been operating for more than 300 years with 25 million customers what being wealthy means in the 21st century.and 122,600 employees in over 50 countries. As this latest Insights report reveals, women are wielding greater economic power than ever before, indisputably contributing to the wealth explosion. This trend raises several questions: how do women approach their financial and wealth management? How does this compare with the attitudes of men? Is their appetite for risk likely to be higher or lower? Do they invest differently, and do they save more than men? Are they more or less likely to seek advice on their finances? A Question of Gender explores these and other differences in attitudes to wealth creation between women and men. Questions about gender touch the very heart of Barclays Wealth’s culture. As an organisation we are committed to the pursuit of diversity, since we believe that only a diverse workforce can bring the levels of creativity and productivity that is required to serve our clients. Attracting, developing and motivating diverse talent is a core priority for us. We hope that you find this second report in our series of interest. We believe it provides cause for deeper thought and reflection on some of the issues facing women and the wealth management industry. Thomas L. Kalaris Chief Executive Barclays WealthBarclays Wealth is the wealth management division of Barclays and operates throughBarclays Bank PLC and its subsidiaries. Barclays Bank PLC is registered in Englandand authorised and regulated by the Financial Services Authority. Registered numberis 1026167 and its registered office is 1 Churchill Place, London E14 5HP.© Barclays Wealth 2007. All rights reserved.For information or permission to reprint, please contact Barclays Wealth at: BarclaysWealth Insights, Barclays Wealth, 1 Churchill Place, London, UK, E14 5HP+44 (0)800 851 851 or visit www.barclayswealth.com 1
  3. 3. Our Insights Panel Headline findingsDr Ros Altmann, Governor of the London School of EconomicsGerard Aquilina, Head of Barclays International Private BankSika Giunta, Chief Executive Officer of US software company, Managed Objects of the report include:Dr Rebecca Harding, Senior Fellow in the Foundation for Entrepreneurial Management at the London Business School, andDirector of Global Entrepreneurship Monitor (Gem UK) Affluence of women Women as wise investorsEmma Harrison, Chairman and Founder of A4E, one of the largest UK suppliers of services to the public, private and • Motivations to amass and protect wealth are neatly dividedvoluntary/community sector is increasing between spending on the present and saving for the future.Mark Kibblewhite, Managing Director and Head of Barclays Wealth UK Private Banking • ‘Women’ and ‘wealth’ are two words being heard together Financial security in retirement is the main goal, followed byKalpana Morparia, joint Managing Director of ICICI Bank more frequently, and the commercial world is sitting up and a better personal lifestyle and enjoyment of the finer things taking notice of women’s growing spending power. Globally in life. See page 10Amy Nauiokas, Managing Director and Head of Brokerage, Barclays Wealth women are becoming an economic force with which to beHolly Sargent, Senior Associate Dean for Advancement and Senior Director for University Women’s Studies at Harvard University reckoned. See page 4Promilla Sehgal, Entrepreneur and Founder of Visage Imports An appetite for riskAlison Steed, contributing author of the report and a freelance journalist, who writes for Wealth Briefing, • Women have a more cautious approach to risk, provingthe Daily Mail and the Daily Telegraph The ‘Glass Ceiling’ persists themselves to be ‘purpose driven’ investors, less focused onPerween Warsi, Founder & Chief Executive Officer, S&A Foods • While the US and UK lead on the number of management income and growth. Women want to know more about and positions held by women, the ‘glass ceiling’ persists and an understand an investment proposition, and financial services equal number of women to men on company boards and in providers are paying considerable attention to making their government is predicted to still be some way off. See page 6 offer more female-focused. Experts claim that by applying this same energy, other industries will be better-placed to tap into this fast-growing market. See page 11 Business as a driver of wealth Better knowledge… • The perception of wealth gained via inheritance or marriage is becoming outdated, but as women become more independent or over confidence? and increasingly common in the world of business, what price • Overall, the majority of men make the financial decisions in a does their success have on family and lifestyle? See page 8 marriage or partnership, but this is changing for the younger generations as the Internet, newspapers and specialist publications play an increasing role in helping women become Education is the better informed about personal finance. See page 13 cornerstone • While men and women have broadly similar views about the Enjoyment of wealth key determinants of their wealth, in particular around education, • Travel, eating out and cultural events are the most popular ways a significant difference between the genders is that women are of enjoying wealth for both men and women. See page 15 more likely to cite a strong family background as being influential. See page 102 3
  4. 4. The commercial world is starting to sit More generally, it is clear that women around the world areIntroduction becoming an economic force with which to be reckoned. Since up and take notice of women’s growing the 1950s, the proportion of the female workforce in Sweden, the UK and the US has risen from one-third to two-thirds. In spending power, and is now redoubling South-east Asia, a region that has in recent years enjoyed its efforts to tap into this money- impressive economic growth, women hold two-thirds of jobs in the export industry. Perhaps most strikingly of all, a recent spinning market report in The Economist suggested that, over the past decade, the increased employment of women in developed countries has A recent study from Datamonitor, an independent research contributed much more to global growth than China. company, finds that the gap between the wealth held by male and female millionaires is narrowing. In 1998, the average male“Women” and “wealth” are two words that are being heard together The combined wealth of Britain’s 100 millionaire in the UK was worth £2.71m (US$5.42m), while the average female millionaire owned just £1.28m (US$2.56m). By richest women in 2007 is £33.27bnmore frequently as the number of high net worth females in the world 2006, women had caught up considerably, with the average female millionaire worth £1.97m (US$3.94m) compared with The flip side of wealth creation is spending, and women’scontinues to rise. From luxury goods manufacturers to private banks, £2.96m (US$5.92m) for men. spending habits are being watched more closely than ever by companies that are keen to tap into this rich vein of opportunity.the commercial world is starting to sit up and take notice of women’s This increase in female wealth has not been limited to developed With some studies suggesting that as much as 80 per cent of all economies. In 2006, the female paper tycoon Zhang Yin was purchasing decisions are made by women, the importance ofgrowing spending power, and is now redoubling its efforts to tap into listed by the Hurun Report as the wealthiest person in China, with developing products and services that meet their needs, an estimated US$3.4bn. Even in Saudi Arabia, a country in which combined with clear and effective marketing, cannot bethis money-spinning market. women can neither vote nor drive a car, women are making their overstated. This has been recognised for a number of years by presence felt in the higher reaches of business. In 2005, Nahed luxury brands, and even by the traditional male bastions of cars Taher became the first Saudi woman to head a large investment and gadgets. Other industries, such as financial services, have bank when she founded the Gulf One Investment Bank in Bahrain.The affluence of women is increasing in no uncertain terms, Rich List, a club that requires wealth of at least £70m (US$138m) been slower to catch onto this trend, but as women increasinglywith the number of female entrepreneurs and senior company to join. The combined wealth of Britain’s 100 richest women in flex their muscles in the global economy, this is a trend that canexecutives burgeoning in the UK and abroad. Some 30 years 2007 is £33.27bn (US$66bn), and data from the Centre for only accelerate across the entire business world.ago, it would have been rare to find women owning their own Economics and Business Research suggests that, by 2020,businesses, or even being members of the board in large 53 per cent of millionaires in the UK will be female.corporations. Now, there are 92 women on the Sunday Times4 5
  5. 5. The lack of senior female directors is bewildering for many stronger than men in areas such as leadership and collaboration, commentators, not least because studies have shown that which are regularly cited as vital for business success. The companies with more women at the top tend to perform better than those with fewer. For example, a study by research organisation Catalyst found that companies with the highest female representation on their senior management teams Companies today face more pressure than ever to increase female representation at the highest management levels. As well as evidence that points to stronger performance among“Glass enjoyed a 34 per cent higher return on equity than those with companies with female directors, a more rigorous corporate the lowest representation. governance requirement in the wake of the Enron scandal has encouraged boards to dismantle the “clubbiness” of the Numerous reasons have been put forward to explain this boardroom and look further afield for new talent. Over time, it is phenomenon, but a common thread seems to be that a hoped that these trends will accelerate the promotion of women diversity of opinions on management boards is likely to lead to to senior management teams, so that one day we may see 50 Ceiling” more rigorous analysis of problems and therefore improved female chief executives in the FTSE 100, instead of just one. decision-making. It may also be because women tend to be Table 1: Percentages of employees in managerial posts 2004 or latest year available Directors & Managers % 18 17 MaleOver the past few decades, the number of women who hold elevated 16 Female 15positions in business and government has steadily increased. 14 13 12 11According to data from the OECD, which combines Labour Force per cent have more than one, according to a report by Spencer 10surveys of a sample of private households undertaken separately Stuart, the recruitment firm. 9by European Union member countries, with data from the US But despite the considerable advances made by women in 8Current Population Survey, around four per cent of female business, the much-discussed “glass ceiling” persists in many 7employees now hold managerial positions in business in OECD countries and industries. Only 10.35 per cent of all directorships on 6countries, compared with 7.1 per cent of men. In the US, the FTSE 100 companies are held by women, compared with 16 per 5figure for women rises to 12.1 per cent, compared with 15.6 per cent on the S&P500. According to the annual Sex and Power Index 4cent of male employees (see Table 1). compiled by the UK’s Equal Opportunities Commission, it will take 3At the highest levels of business, women have gradually become another 60 years to achieve an equal number of female directors of 2better represented. There are 117 female directors of FTSE 100 FTSE 100 companies, and up to 200 years to achieve an equal 1companies, and 77 per cent of those companies have at least number of women in Parliament. 0 United States United Kingdom Ireland Iceland Hungary Belgium Norway France OECD average Finland Netherlands Poland Slovak Republic Czech Republic Sweden Denmark Germany Portugal Luxembourg Italy Greece Spainone woman on their board. In the US, 89 per cent of companieson the S&P500 have at least one woman on their board, and 64 Sources: OECD, European Labour Force surveys and US Current Population Survey6 7
  6. 6. Drivers and goals“Younger women are becoming more independent and goingthrough the career profile more swiftly” of wealth As well as climbing the corporate ladder with greater ease, Dr Harding agrees, and notes that women at home who have time women are also becoming increasingly common in the world of and resources behind them are likely to go into the labour marketThe traditional sources of wealth for women have been Dr Rebecca Harding, Senior Fellow in the Foundation for entrepreneurship. Holly Sargent, Senior Associate Dean for by being entrepreneurial. “Their businesses are more likely to beinheritance from their parents or deceased husbands, or Entrepreneurial Management at the London Business School, Advancement and Senior Director for University Women’s family orientated, less commercial, and more socially, or ‘gap in thefinancial gain from the divorce of a wealthy husband. While and Director of Global Entrepreneurship Monitor (Gem UK), Studies at Harvard University, points out that when women do market’ based,” she explains. “A lot of innovative products arethese methods of achieving wealth status are still evident, a corroborates this general shift in sources of female wealth. “A lot start a business, it often does not have the sole purpose of created around female-orientated gaps in the market.”recent global survey conducted by the Economist Intelligence of the female wealth is still coming from divorce,” she says, “but generating wealth. More often than not, there will be a socialUnit on behalf of Barclays Wealth of 600 affluent, high net younger women are becoming more independent and going element to their entrepreneurship, which is often as important,worth and ultra high net worth individuals indicates that this through the career profile more swiftly.” if not more so, as their need and willingness to create wealth.perception is becoming outdated. As women generate more of their own wealth from income and Table 2: Sources of personal wealth cited by womenThe vast majority of those surveyed – both men and women – investments, an unfortunate side effect is that we may see Which of the following have been most important to you as sources of your personal wealth? Select up to three responseshave earned their money through their job or the ownership of a divorce levels increasing. Recent research by Randall Kesselring, North Middle East Asia America Europe & Africabusiness, although in both cases, the proportions are slightly Professor of Economics at Arkansas University, in which the Inheritance 26.8 % 22.2 % 15.2 % 25.9 %higher among men. Less than one-fifth of women, and just over finances of more than 100,000 women were examined, found Income from job 53.7 % 75.0 % 64.6 % 63.0 %one-sixth of men, have generated significant wealth from an that, with every US$20,000 that a woman’s wealth increased Income from investments 34.1 % 38.9 % 24.1 % 44.4 %inheritance. Meanwhile, marriage is a significant source of relative to the family’s overall income, the chances of marital Income from property rental 12.2 % 11.1 % 8.9 % 11.1 %wealth for around one-quarter of women, compared with just break-up rose by one per cent. Income from sale of property 9.8 % 16.7 % 8.9 % 0.0 %one in 10 men. Looking in greater detail at the research, one Income from a business 26.8 % 16.7 % 19.0 % 18.5 %finds notable differences between the regions. For example, the Sale of a business 9.8 % 11.1 % 7.6 % 14.8 %proportion of women who say that marriage is a significant Pension 14.6 % 11.1 % 12.7 % 3.7 %source of wealth is highest in the Middle East and Africa, at 30 Rich benefactor 4.9 % 0.0 % 8.9 % 3.7 %per cent, and is lowest in North America, at 19 per cent. Marriage 24.4 % 19.4 % 27.8 % 29.6 % Gambling/lottery win 2.4 % 2.8 % 7.6 % 7.4 % Divorce settlement 2.4 % 5.6 % 0.0 % 3.7 % Other 0.0 % 0.0 % 2.5 % 0.0 % Source: EIU/Barclays Wealth8 9
  7. 7. Table 4: Motivations to amass and protect wealth Table 5: Wealth and lifestyle (comparison of attitudes of mass affluentEducation is the cornerstone (rankings in order of importance) What are the main motivations for you to amass and protect your wealth? and high net worth women) What impact has increased personal wealth had on the following areas of your life?So given this shift in the likely sources of female wealth, what Comparing the regions, we find that women around the world Women with Women Women Menare perceived to be the most important factors that influence have slightly differing views as to the key factors that influence assets with assets under $1m over $1mwealth accumulation? Men and women have broadly similar wealth generation. While education is perceived universally as Financial security in retirement 1 1 More leisure time 56% 70%views about the key determinants of their wealth, and they tend being the single most important influence, the family is seen as Better personal lifestyle 2 2 More time with family 41% 59%to be grouped around education (in particular, university or a more dominant influence in the Middle East and Africa than in Enjoyment of the finer things in life 3 3 More stress 55% 59%college), determination, and being allowed to live independently other regions. Respondents from those regions are more likely Ability to travel extensively 4 4= Greater personal happiness 70% 80%at a young age. The only significant difference between the than those from elsewhere to cite strong family ties, a wealthy Ability to retire early 5 6 Better health 54% 64% Ability to afford a large property 6 7genders is that women are more likely to cite a strong family family background and the influence of an individual family Better relationships with family 57% 53% Financial security for children 7 4=background as being influential. Both genders see propensity for member as being important factors that have helped them Job satisfaction 74% 63% Ability to help others (e.g. philanthropy) 8 8wealth as being a nurture, rather than nature issue, with very accumulate wealth. Private education for children 9 9 Source: EIU/Barclays Wealthfew respondents considering that an innate talent for wealth Status 10 11generation is an important factor. Spend and save are Enjoyment of making money 11 10 Perceptions of the benefits of wealth also vary considerably between the regions. In general, respondents from Asia appear to Ability to afford more than one property 12 12Table 3: Factors that have influenced wealth(rankings in order of importance) the main goals Source: EIU/Barclays Wealth have been able to enjoy more leisure time and time with their families as a result of their wealth. Conversely, respondents fromHow influential do you think the following factors have been in helpingyou achieve the wealth you now hold? Motivations for amassing and protecting wealth are almost North America are least likely to consider that greater wealth has Women Men identical for men and women. Financial security in retirement is The emotional given them more time with their families, and are second least seen as the main priority, followed by a better personal lifestyle likely (after the Middle East and Africa) to consider that it has University Education 1 1 and enjoyment of the finer things in life. In other words, the impact of wealth given them more leisure time. Despite these constraints on their School Education 2 3 goals appear to be neatly divided between spending on the time, they are however most likely to think that greater wealth Determination 3 2 It is often said that money cannot buy you happiness, but the present and saving for the future. More intangible factors, such has enhanced their levels of personal happiness. Strong family ties 4 9 results of the survey suggest that this old cliché may be somewhat as status and the sheer enjoyment of making money, come Understanding of money from early age 5 5 wide of the mark. The women questioned who hold assets in much further down the list. The only substantial difference Independence from an early age 6 4 between the sexes is that men are more likely to see financial excess of $1m were more likely than those with assets below that Women and Peer group 7 7 threshold to think that increased wealth had brought them more security of children as a priority. There is, however, an High appetite for risk 8 6 interesting difference between women in different regions: leisure time, more time with their family, better health and, yes, personal finance Wealthy family background 9 11 increased levels of happiness. Women below the $1m mark could those in the Middle East and Africa are more likely than those Support from individual family member 10 10 console themselves that they generally had greater levels of job Many experts contend that women are far less likely to take risks elsewhere to consider financial security for children as a key Innate talent for wealth generation 11 8 satisfaction but, on the minus side, they suffered from similar with their money, whether in their personal finance or business motivation, with 63 per cent seeing it as important. This is Modest family background 12 12 levels of stress to those with greater wealth. affairs. This perception is borne out by the research, which finds further evidence of the strong family ties that the survey that, in the past three years, more men than women haveSource: EIU/Barclays Wealth suggests are characteristic of the region. invested in vehicles that are generally considered to be at the riskier end of the financial spectrum, such as hedge funds, private equity, structured products and derivatives. Men are also more likely to have invested in stocks and shares.10 11
  8. 8. Amy Nauiokas, Managing Director and Head of Brokerage, The survey suggests that women in North America have a This observation may come down to the fact that women cent higher than the proportion of women although, in reality,Barclays Wealth, says that this analysis fits with the typical propensity to be most sophisticated in terms of the breadth of generally want to know more about an investment proposition, this could simply be put down to over confidence rather thanfemale customer profile. “Our female investors tend to be their investments. The continent has the highest proportion of and fully understand it, before they are prepared to sign up. any superior knowledge. The single notable exception is thebetween 45 and 65, and they tend to have a more cautious women that invest in stocks and shares, bonds, property and Financial institutions will tell you that, in general, women want working of the stock market, where the knowledge gap extendsapproach to risk,” she says. personal pensions. Women in the Middle East, however, are more more help in making their financial decisions than men, and to around 20 per cent between men and women. The greater likely to invest in commodities, such as gold, and hedge funds, often the level of reassurance they need about the decisions extent of this difference suggests that this is one area where than those in any other region. European women, meanwhile, are they are making is much higher. men do have a genuine edge over women. most likely to invest in alternative assets, such as antiques and art. “Women are much more clinical in their need to know what they Looking at the differences between the regions, we find that are going to get before they sign up for something,” says Dr Ros confidence levels among women are often highest in the MiddleTable 6: Regional differences in investing (% of women who say they have invested) Altmann, Governor of the London School of Economics. “Men have East and Africa. Although the region has a relatively lessIn which of the following vehicles have you invested in the past three years? more of a mindset that you have to just go out and get it, and you established investor culture, women there were most confident North Middle East can see their attitude towards risk taking in the games they play.” about investing in funds and collective investments, and hedge Asia America Europe & Africa Individual stocks and shares 65.9 % 69.4 % 65.8 % 48.1 % funds. They were also among the most confident in their knowledge of investing in estate planning, retirement planning Bonds 31.7 % 38.9 % 25.3 % 22.2 % “Women want more nurturing, coaching Gilts 14.6 % 5.6 % 10.1 % 14.8 % and the capabilities of private banks. Currency 19.5 % 13.9 % 10.1 % 18.5 % and support, and a lot of that focuses on Gerard Aquilina, Head of Barclays International Private Banking, Commodities (eg, gold) 9.8 % 19.4 % 15.2 % 33.3 % the language of finance” comments that in recent years he has witnessed women in the Hedge funds 12.2 % 8.3 % 12.7 % 18.5 % Property 19.5 % 44.4 % 36.7 % 29.6 % Middle East occupying greater prominence in the world of finance. Personal pension 17.1 % 38.9 % 36.7 % 29.6 % Aware of the different approaches and requirement of the genders, “One of the trends I have observed is the considerable increase in Tracker funds 7.3 % 11.1 % 13.9 % 25.9 % private banks and other financial services providers are now paying the numbers of female investment bankers, financial fund Investment trusts 17.1 % 22.2 % 20.3 % 22.2 % considerable attention towards making their products and services managers and portfolio managers in the region” he explains. “This Derivatives (futures, options, CFDs etc) 2.4 % 11.1 % 5.1 % 7.4 % more female-focused. But there is still a language barrier when it is a trend which would not have been seen some years ago, and is Alternative assets (fine wine, antiques, art etc) 2.4 % 8.3 % 16.5 % 3.7 % comes to women and finance that is not going to change in the testament to the growing influence of women in business.” Private equity/co-investing 4.9 % 11.1 % 10.1 % 0.0 % foreseeable future. “Women want more nurturing, coaching and Structured Products 9.8 % 8.3 % 7.6 % 7.4 % support, and a lot of that focuses on the language of finance,” says Women from Europe, meanwhile, professed greatest Credit/leveraging 9.8 % 2.8 % 6.3 % 7.4 % Dr Harding. By taking more time and using more energy to understanding of stocks and shares, with 38 per cent of women understand the needs and considerations of women, businesses saying they are confident in this area (North Americans were not Source: EIU/Barclays Wealth will be able to tap into a fast-growing market far more effectively. far behind, with 36 per cent saying they are confident here). Women in Europe also seem to have a slight edge over those inThe table above clearly shows that property is an important Furthermore, when asked how they would choose to spend a cash other regions in terms of their knowledge of the debt market,investment vehicle for many women around the world. In NorthAmerica and Europe, property was second only to stocks and windfall, 25 per cent of women cited investment or personal purchase of property if they were to receive $2m. Better knowledge. . . with 34 per cent professing confidence in that area.shares as the preferred investment over the past three years,and it also scored highly for women in Asia and the Middle East. However, women tend to place less importance than men on or over confidence?Large increases in property values since the 1990s have their income from investments, and from property rental and Male respondents to the survey profess a greater knowledgeencouraged many women to channel their funds into bricks and property sales. “I keep coming back to the fact that women tend than female respondents of every aspect of personal finance –mortar, and have also been significant in terms of wealth to have purpose-driven investing,” says Ms Nauiokas. “They will from tax and estate planning to stock markets and investing increation. Income from property rental or the sale of property is alter their approach as they reach their goal and will often act to hedge funds. Almost across the board, the proportion of mencited as an important source of wealth for 20 per cent of protect what it is they have built up. Male investors tend to look claiming good knowledge of financial products is around 10 perwomen in our survey, and 31 per cent say that they plan to for income and growth.”invest in property over the next three years.12 13
  9. 9. North American women appear to be most aware of the need The media also cannot be underestimated as a source offor diversification in their investments, with more respondentsthan from any other region agreeing that they do not likeputting all their money into one account. Meanwhile, women inAsia who were questioned for the survey tended not to rate education about trends in financial services. Mr Aquilina cites as an example the daily coverage in broadsheet newspapers of the latest purchase by private equity or hedge fund activity. Because of this, the customer, whether male or female, is Enjoyingtheir knowledge of financial matters particularly highly andgenerally lagged behind their peers in the other three regions.“At one time clients had no access to becoming more educated, questioning and in turn, more demanding, as this knowledge increases. According to Mr Aquilina, new trends are emerging due to the intellectual content of the dialogue between private bankers and their clients, such as increased confidence in debt and interest in wealthresearch, product innovations and pricing, alternative investments. We have established already from the research that women considerand to an extent they were completely The majority of men in a marriage or partnership say that they make the financial decisions – 65 per cent compared to 41 per a better lifestyle and the ability to enjoy the finer things in life as onereliant on financial advisers to pick an cent of women. Joint decisions are made in just under one- of their main motivations for wealth creation. So how do they spendinvestment for them” quarter of relationships. “You do need to differentiate between their leisure time and disposable income? age groups,” says Dr Altmann. “In my experience, a lot of older women tend to rely on their husbands to do the investing. OftenDespite, or perhaps because of, the greater knowledge they they have not taken the time to be financially aware, and theyclaim in financial matters, men are more likely than women to Travel is the most important leisure pursuit for both sexes, extravagance, although the proportion of women who spend can find they have really been left behind in a divorce. Butseek third-party advice on their finances. Independent financial closely followed by eating out and cultural events, such as going more than $5,000 annually is slightly higher than that of men. younger women are taking much more control of their finances,advisers are the first port of call, with 45 per cent of men and to concerts, the theatre, or art galleries. But after that, the Men, meanwhile, are more likely to spend in excess of $5,000 on and are looking after themselves better.”38 per cent of women saying that they use this service. Men are choices for men and women diverge considerably. For example, furniture, cars and gadgets.also more likely to consult tax specialists, accountants, private 31 per cent of men like to take part in sport, compared to just 17 Women are also passing on their financial knowledge to theirbanks, brokers and the media. The only source of advice that is per cent of women. The latter, it seems, are busy shopping – In recent years, there has been a significant trend in the luxury dependents, says Mr Aquilina, and are paying special attentionmore widely used by women than men is the high-street bank. with 37 per cent enjoying retail therapy as a pastime, compared goods market towards marketing and advertising specifically to to educating females. “If you take as a given that you areAround the same proportion of men and women seek no advice with 12 per cent of men. target women. Jaguar Land Rover, for example, has worked hard dealing with a paternalistic male world where financial decisionsat all – about 15 per cent. to shed its image as a brand that is targeted primarily at men. are concerned, we note a higher propensity among parents in Looking at the regions, Asian women appear to be keener on To this end, it has created a women’s panel to advise on the Latin America and the Middle East, for example, to have theirIn terms of developing wider knowledge, both men and women travel and shopping than their peers elsewhere in the world: 68 design of future cars, introduced policies to encourage more daughters learn about financial management.”are turning to new media channels as a source of education and per cent said that they favoured travel in their leisure pursuits, women onto its workforce, and launched “Jaguar women”, ainformation. Mr Aquilina points out that the growth of the compared with 56 per cent of European women and 44 per cent new perfume. Notably, the company also has a femaleInternet has become an important source of financial of women from Middle East and Africa; while 49 per cent of managing director, Bibiana Boerio.information of the kind that once would have been very difficult Asian women favoured shopping, compared with just 25 perto obtain. “At one time clients had no access to research, cent in North America.product innovations and pricing, and to an extent they werecompletely reliant on financial advisers to pick an investment for In terms of how they spend their money, both men and womenthem,” he explains. “Now they have access to various products cite holidays and home improvements as their top priorities: 63and investment ideas.” per cent of men and 59 per cent of women spent more than $5,000 on holidays in the past year, while 46 per cent of men and 45 per cent of women spent more than that amount on home improvements. Clothes are another important14 15
  10. 10. 20%Women Women59% 19%Men Men 63% 16%Women 14%Men Table 7: Proportions of men and women who spent more than $5000 in past year on the following categories of items Women Men Holidays 59% 63% Home improvements 45% 46% Clothes 43% 36% Cars 39% 46% Jewellery and watches 36% 26% Gadgets 31% 38% Art and antiques 24% 24% Furniture 23% 41% Charitable donations 20% 23% 39%Women Fine wine 20% 19% Jets, yachts, and helicopters 16% 14% 46%Men Source: EIU/Barclays Wealth 45%Women 46%MenSo how do men and womenspend their leisure time anddisposable income? 24%Women 16 24%Men 17

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