By Alexandra “Ali” A. Bayler, Managing Director and Zelle R. Dunn, Chief Operating Officer, New Republic Partners
Women are increasingly in proximity to wealth and major financial decisions, yet their engagement and confidence in investing are not progressing as quickly. Women report they do not feel supported by the broader financial industry1, nor do they feel as confident in their own investment abilities as men2 despite having more assets to invest3 than previous generations.
Contributors to lower participation in investing include the lack of women in the finance industry, particularly at the highest ranks, as well as dispersions in income4. The result is that within our society, many do not view women as investors or financially savvy. This impacts both how women see themselves and how people interact with women around topics of finance. Men still make most of the investment decisions in families5, and also comprise the majority of wealth advisors (69%)6, finance professors (75%), investment fund managers (86%)7 and corporate executives (75%)8.
We know females are controlling more wealth both by earning more and with the “Great Wealth Transfer” of inheritances. Women will control approximately $30 trillion of financial assets by 2030 according to McKinsey — a transfer of such magnitude it approaches the annual GDP of the United States9. Women also control many household buying decisions and financial decisions as caregivers. Naturally, women assume more financial responsibility by way of living longer than men on average.
Yet despite these trends, many women do not recognize themselves as investors, and there is a trend of underinvestment – i.e., women saving rather than investing.
Why has female involvement in investing not grown more quickly, and how can we accelerate the elimination of outdated assumptions based on gender?
We need a perception shift.
While stating the obvious, being a good investor or financial leader for your family or others is not about gender. Rather, it is about knowledge, experience and discipline. Numerous published research reports on female investors demonstrate women generate strong investment performance not only for their personal assets, but also for their clients’ assets, as measured when professional female fund managers’ performance is compared against their male peers10. The data also clearly shows having more women in finance and in leadership roles benefits public company stock and corporate performance11.
To be clear, both men and women should be at the table when it comes to making financial decisions. A win for all is achieved by having a variety of smart perspectives and eliminating bias. Women need to see themselves as having the ability to be thoughtful stewards of their own wealth, to have professional investment opportunities, and to partner with advisors who recognize their needs. Everyone can benefit from having more women engaged.
When examining qualities important in investing, we find many in which women excel:
- Long Term Perspective. Investors need to withstand volatility without impulsive decisions. They need patience for long-term growth and a tendency to seek out stability. It is common for women to be oriented toward the long-term impact of the financial decisions they are making.
- Financial Discipline. Successful investors focus on fundamentals and avoid speculative investing. They may not care who has the shiniest new thing, just that there is enough for everyone in good times and bad. Considering how one’s portfolio will withstand a period of stress is as important as considering the best growth opportunities. Thinking about the whole is as important as each component. The best investors have complementary strategies and diversification.
- Goal Focused. Tying financial decisions with actual life objectives, including retirement, homes, education, and impact is a prudent way to reach personal goals. Financial resources are a means to creating the life you want. As one female attendee at an investment luncheon New Republic Partners recently hosted said, “Managing and understanding your wealth is another way of taking care of your family.”12
- Curious and Collaborative. Successful investing comes from thorough research and due diligence to make informed decisions. This approach includes learning, seeking advice, understanding different perspectives, collaborating and asking questions. Communicating well is critical to success and women often utilize approaches of learning through questions and thoughtful dialogue.
The bottom line is many of the traits important in investing are not directly tied to gender and can be used by both women and men successfully. Women are well positioned for greater contributions to investing and finance. Engagement in making personal financial decisions and building wealth is an important part of having independence and the ability to affect positive change.
Figuring out where to begin building investment expertise is often a challenge for women. We hear comments about fear of making a mistake, one’s voice is ignored, money is not discussed in their networks, or the jargon is frustrating. Women also have time and bandwidth limitations, particularly given a higher proportion of caregiving responsibility.
While these challenges are all very real, we can encourage our daughters and female friends and colleagues to speak up, and we can be more proactive on this topic ourselves. Initial steps for women could include:
- Starting conversations with your advisor and friends about your investment questions; asking for an individual meeting with your advisor if your partner usually leads the calls.
- Being current on your family’s estate and tax management plan; having a trusted wealth advisor, CPA and estate attorney.
- Understanding how you are invested and why: determine what would change with different life or market events, identify what fees you are paying, and evaluate how your spending compares to your growth rate.
- Considering if high quality private investments are appropriate, and, if so, determining with your advisor how to execute.
Looking forward, women’s financial responsibilities and economic opportunities are significant and growing13. While we may have an imbalance in seeing women as leaders in finance today, the qualities necessary to be excellent stewards of wealth reside in women just as much as men. As a goal, let’s take the necessary proactive steps to encourage universal involvement in investing and financial leadership so more women can benefit from the resulting independence and everyone can benefit from improved investment outcomes14.
1 New York Life Advisor Advancement Institute (2023). McKinsey (2022). “Why Are More Women Than Ever Firing Advisors.”
2 Principal Financial Group (2023). “State of Women.”
3 McKinsey & Co (2020). “Women as the Next Wave of Growth in U.S. Wealth Management.”
4 Morningstar (2024). “Why Do Women Invest Less Than Men.”
5 UBS (2021). “Own Your Worth.”
6 FA (2023). “Will More Female Clients Mean More Female Advisors.”
7 Bloomberg (2022). “Why Are There Not More Female Fund Managers.”
8 S&P Global (2024). “Women in Leadership: What’s the Holdup.”
9 McKinsey & Co (2020). “Women as the Next Wave of Growth in U.S. Wealth Management.”
10 Blackrock (2023). “Lifting Financial Performance by Investing in Women.” HBS (2018). “The Other Diversity Dividend.”
11 S&P Global (2019). “When Women Lead, Firms Win.”
12 NRP, April 2024, Women & Wisdom.
13 Fidelity (2023). “Women Tapping into Their Financial Superpowers to Gain Ground with Their Money.”
14 CNBC, Fidelity (2023) “Women Investors Are Still Outperforming.”
Additional Sources:
• CFA Institute (2019). “The Equality Equation: Three Reasons Why the Gender Investing Gap Is Closing.”
• CNBC (2022). “Op-ed: If female investors have any weakness, it’s their mistaken belief that they’re not good investors”
• Fidelity Investments (2022). “Fact Sheet: Fidelity’s 2022 Money Moves.”
• Fidelity Investments (2023). “Fidelity Investments® Study: Women Tapping Into Their Financial Superpowers to Gain Ground with Their Money.”
• FINRA (2022). “Understanding Investors in the U.S. In The Face of Technological Innovation.”
• Gallup (2021). “Bitcoin Making Inroads With Younger U.S. Investors.”
• George Washington University, Global Financial Literacy Excellence Center (2020). “Mind the Gap: Women, Men, and Investment Knowledge.”
• Goldman Sachs (2022). “Women and Retirement Security: Digesting the Data.”
• Nationwide (2022). “A step toward building confidence.”
• New York Life (2024). “Inspiring Women by Partnering in Their Financial Growth.”
• Robinhood (2021). “In a New Era of Investing, Gender and Generational Gaps Remain.”
• Vanguard (2020). “The same but different: Gender and investor behavior in Vanguard retail accounts.”
• Vanguard (2022). “Gender diversity and U.S. active equity fund performance.”
• Warwick Business School (2018). “Are women better investors than men?”
• Wells Fargo (2023). “Women and Investing.”
Alexandra “Ali” A. Bayler is a managing director at New Republic Partners, leader of the firm’s Mid-Atlantic office, and member of the firm’s investment committee. She serves families and institutions, leveraging the firm’s extensive resources across investments, governance, generational planning, philanthropy, and client service.
Reach her at info@newrepublicpartners.com
Zelle R. Dunn is the chief operating officer of New Republic Partners and a member of the firm’s executive committee. She brings over two decades of experience in wealth advisory and investment management. She leads the firm’s day-to-day operations and heads the firm’s North Carolina advisory team. Zelle also advises a portfolio of individuals and families on strategies and investment solutions to achieve their goals.
Reach her at info@newrepublicpartners.com
About New Republic Partners
New Republic Partners is an innovative investment management and wealth advisory firm serving affluent families, RIAs, endowments and foundations. We believe clients benefit from access to investment opportunities usually reserved for large institutional investors and the expertise and experience of a successful and seasoned investment management, wealth advisory and family office solutions team. The firm is headquartered in Charlotte, North Carolina, and serves clients across the U.S. with regional offices. More information can be found at New Republic Partners.
New Republic Capital, LLC (which does business as “New Republic Partners” or (“NRP”) is an investment advisor registered with the U.S. Securities and Exchange Commission. Registration does not imply a certain level of skill or training. More information about NRP’s investment advisory services can be found in its Form ADV Part 2 and/or Form CRS, both of which are available upon request.
The opinions expressed are those of NRP. The opinions referenced are as of the date of publication and are subject to change due to changes in the market or economic conditions and may not necessarily come to pass. Forward-looking statements cannot be guaranteed.
NRP does not provide accounting, tax, or legal advice, and this should not be construed as accounting, tax, or legal advice. You should always consult with your accountant, tax professional, or attorney with regard to specific questions and obligations in said fields.