Wealth Management Insights

𝟭 𝗶𝗻 𝟰 𝘃𝗲𝗻𝘁𝘂𝗿𝗲 𝗰𝗮𝗽𝗶𝘁𝗮𝗹𝗶𝘀𝘁𝘀 𝘁𝗵𝗶𝗻𝗸 𝘄𝗼𝗺𝗲𝗻’𝘀 𝗽𝗮𝗿𝘁𝗶𝗰𝗶𝗽𝗮𝘁𝗶𝗼𝗻 𝗶𝗻 𝗳𝗼𝘂𝗻𝗱𝗶𝗻𝗴 𝘁𝗲𝗮𝗺𝘀 𝗶𝘀 𝗼𝘃𝗲𝗿𝗿𝗮𝘁𝗲𝗱. 𝟭 𝗶𝗻 𝟭𝟬 𝘀𝗮𝘆 𝘁𝗵𝗲𝘆 𝗱𝗼𝗻’𝘁 𝘄𝗮𝗻𝘁 𝘁𝗼 𝗶𝗻𝘃𝗲𝘀𝘁 𝗶𝗻 𝘄𝗼𝗺𝗲𝗻. Together with Laura Koch and Elisabeth Berger (JKU - Institute for Entrepreneurship), I surveyed 361 international VCs using a randomized response technique to bypass social desirability bias. The results aren't unconscious bias. The results are open discrimination. And it’s personal. Some of the strongest startups I’ve seen at the University of Hohenheim were women-led, such as Holiroots or Viva la Faba. What a waste of potential. We knew gender bias existed in venture capital. Now we know how much — and where. 𝗪𝗵𝗮𝘁 𝗻𝗼𝘄? One recommendation from our findings that’s both practical and powerful: 👉 Increase the share of women in venture capital. Why it matters:  • Women VCs show significantly less bias.  • Diverse teams make better decisions.  • Mixed teams perform better. If we want fairer funding decisions, we must rethink who’s making them. 𝗟𝗲𝘁’𝘀 𝗻𝗼𝘁 𝗮𝘀𝗸 𝗶𝗳 𝘄𝗼𝗺𝗲𝗻 𝗮𝗿𝗲 “𝗶𝗻𝘃𝗲𝘀𝘁𝗮𝗯𝗹𝗲.” 𝗟𝗲𝘁’𝘀 𝗮𝘀𝗸 𝘄𝗵𝘆 𝘀𝗼𝗺𝗲 𝗶𝗻𝘃𝗲𝘀𝘁𝗼𝗿𝘀 𝘀𝘁𝗶𝗹𝗹 𝗮𝗿𝗲𝗻’𝘁. The paper is open access in Venture Capital—An International Journal of Entrepreneurial Finance. Feel free to share it or use it in teaching, workshops, or policy work. 📄 https://lnkd.in/eN4jfJQx

Remember all that chat about VC funds wanting to hire more women for investment roles? It’s a sorry state of affairs. While some progress was briefly made, the majority of the women who started in venture capital between 2020 - 2022 have since churned out. Here’s the gender composition of the senior leadership at the Australian investment teams across the largest VC funds: Blackbird Ventures: 5 male partners; 1 female partner; 2 male principals Square Peg Capital: 4 male partners; 2 male principals  Airtree Ventures: 4 male partners; 2 female partners; 3 male principals Of the 23 investment team members at the partner / principal level; 3 are women. That’s roughly 1/8th. I want to get in before the deluge of hot takes about how there’s a direct causation between the dearth of female investors and underinvestment in female founders. I’ve combed through the local data; the sample size is quite small, but my finding is that female partners lead investments in female founders at roughly the same rate as their fund overall. And FWIW, I think putting the burden on female investors alone to champion female founders is not how we solve the issue of funding inequity. I also don’t have a hot take about how these VC funds are boys clubs that are hostile towards women. I haven’t worked at these funds, and people leave for individual reasons. But I’ll venture a take: I think to be a really good VC investor, you have to be disagreeable. You have to be willing to fight for deals that others have written off; willing to disagree with partners on their reasoning, their pattern matching, their gut instinct that the founder they’ve just met is undeniable. And you’re encouraged to be contrarian, to develop a thesis, a point of view! But in male dominated environments (and perhaps in society at large), disagreeable women stick out. They’re parsed as headstrong; difficult; insubordinate. This feedback doesn’t just come from team members, it comes from founders too. I’ve noticed founders (both male and female) can have particularly negative reactions when they’re told by young women that their company is uninvestable. Over time, perhaps those women don’t build the easy relationships that lubricate promotion funnels. Perhaps, if they’ve rubbed someone senior the wrong way, they’re not brought in to assist with the most promising deals—the ones that have come via warm introductions to partners. Of course, disagreeable men can also rub people the wrong way! But I’ve observed that men can often be disagreeable and still extremely well liked, whereas it’s harder for women to walk this tightrope. I don’t really purport to have a solution: it’s not my monkeys, not my circus. But I do want there to be an actual conversation about root causes, rather than handwringing with shallow analysis. Pouring one out for disagreeable women everywhere 🍻

In honor of Women's History Month, I want to share some data points from the chapter, "Listen to Women", in "The Soul of Wealth." The long and short of it: Women are the ultimate behavioral investors, but no one (not even most women), believes it. The data shows that: - Women generate higher investment returns than men at both the retail and professional level. - Women trade less, take a more measured approach, and are more likely to stick to long-term plans. - During bear markets, women outperform men by 1.3 percentage points, according to Openfolio Yet, despite their superior track record: - Only 18% of CFA charterholders are women - 82% of married men report handling big investment decisions alone - 40% of female investors say advisors ignore their input Even women underestimate themselves. - Only 9% of women think they’re better investors than men—despite the overwhelming data proving otherwise - Women are twice as likely as men to describe themselves as “financially insecure” regardless of actual income Meanwhile, firms with more women in leadership outperform their peers: - Gender-diverse teams make better M&A decisions with lower failure rates - Companies with higher female representation see stronger financial performance over time Let's start to tell a new story about women and money that's based in fact and not old, biased thinking.

I recently read an interesting McKinsey & Company report that predicts women will control up to 45% of all retail financial assets in the EU and US by 2030. That’s trillions in capital. Trillions in influence. And yet? The wealth management industry hasn’t kept pace. According to the research, many wealth managers are still defaulting to male clients—without truly tailoring their services to meet women’s financial needs. And I was curious about the reasons behind this: ▪️Only 1 in 5 wealth advisors in Europe is a woman. ▪️Most wealth management teams still assume men are the primary decision-makers. ▪️And there’s not enough outreach to younger women – even though they’re the ones driving the shift. This isn’t only gender bias—it’s bad business. If women are set to control nearly half of the world’s wealth, they will be increasingly willing to walk away from advisors who don’t take the time to understand them. The next generation of investors will look totally different to the investors of today. So, wealth management companies have a choice: build systems that reflect that change, or stick with a model that will soon be a thing of the past. Adapt? Or lose relevance? As a CEO, to me the answer is clear. (I’ve attached the report for those interested in the full stats and insights.)

The biggest financial scam women fell for? That they’re not smart enough to invest. I’ve heard this line more times than I can count. At investor meetings. At dinner tables. Even in business circles. But you know what’s worse than hearing it? Watching brilliant women actually believing it. Let’s debunk the top 3 money myths still holding too many of us back: → Myth 1: “Women aren’t good at managing money.” Studies from Fidelity show women consistently outperform men in investment returns by 0.4%. Why? Less impulsive trading. More long-term thinking. Smarter budgeting. → Myth 2: “Investing is a man’s game.” Risk isn’t the problem – lack of exposure is. Most women don’t get taught to invest early on in their careers. But those who do? Often outperform. → Myth 3: “Money talk is too unladylike.” The Truth is: Silence keeps us underpaid and unprepared. Women who negotiate earn up to $1M more over a lifetime. Money talks and so should we. And yet – most women still hesitate to talk about money. Not because we can’t. But because we’ve been taught it’s not our place. The Bottom Line is: This isn’t about being better than men. It’s about unlearning what never served us. And rewriting the rules on our own terms. What’s one money myth you had to outgrow to take back your financial power? Assemble in the comments!

70% of women change financial advisors w/in 1 yr of their baby boomer husband passing away 🤯 By 2030, American women are expected to control much of the 💰$30 trillion in financial assets that baby boomers will possess—a potential wealth transfer of such magnitude that it approaches the annual GDP of the United States. From McKinsey & Company "We’ve heard through our field interviews with RIAs that many of their new female clients came to them from other firms, where they didn’t feel they could ask basic financial-literacy questions or spend enough time with advisers to find the right financial plan to meet their goals" ➡️ Other previously male-focused industries, such as automobiles and real estate, have revamped their product and service models to meet women’s needs It's time for financial services’ to do the same. 🔴 McKinsey found that by retaining baby-boomer women, firms could see 1/3 higher revenue potential. 🔴 Firms that acquire and retain younger women clients—especially millennials—could see up to 4️⃣x times faster revenue growth. Does your firm do a good job of this? I'd love to see examples - so please share 👉🏽 And if you don't already but want to, then consider these Marketing and Communications Strategy to Engage Women: 1️⃣ Hire more women advisors to your firm (think of how many websites out there have a wall of men listed on the "our team" page) 2️⃣ Get rid of jargon, focus your marketing on being approachable 3️⃣ Don't just recommend; teach and explain where warranted 4️⃣ Create case studies that showcase how you have helped other women going through pivotal life moments (divorce or death of a spouse.) The more specific, the better. Put them on your website 5️⃣ Use images and tell stories that will resonate with the women you serve on your website, and in your marketing Full McKinsey Report: https://cutt.ly/HKzH2c8 #wealthmanagement #financialplanning #investmentmanagement

In honor of #financialwellness month, let's chat women and investing. It's a common misconception that women are less interested in investing. In reality, societal barriers, not a lack of interest, often hold us back. In fact, statistics show that women are diligent investors. Our approach involves thorough research, calculated risks, and a focus on long-term gains, often leading to better risk-adjusted returns than our male counterparts. And, despite facing a gender pay gap and longer lifespans, women's growing wealth presents a massive opportunity in the investment world; we just need to grab the reins and jump in! So, what's my advice for women looking to start investing? Start your journey today, and don't worry about knowing everything at once. Together, let's empower each other to make informed financial decisions and reshape the investment landscape! For more insights, dive into iShares latest episode of Market Mythbusting below.

I've been asked many times why we have a Rich Women List, when we already have the The Australian Financial Review Rich List. It's also not something most people want to be on. But this is why it matters: It showcases the substantial wealth created by a growing number of female entrepreneurs. It also celebrates the importance of female wealth creation at a time when the country’s top companies are struggling to narrow the gender pay gap, women’s superannuation balances are typically more than 20 per cent less than those of men, and female founders are less likely to attract funding. Making investing, wealth creation and business insights common topics among women is just so important. It enables financial independence, it enables new fields of investment and it fosters more diverse views at the most influential tables in the country. You can read this year's list, and the stories of some of the remarkable women on it, here: https://lnkd.in/gzQMYvCg

To grasp the depth of women's frustration regarding the latest announcement of a women's health unicorn (founded and led by men), you must delve into the hidden struggles women encounter during fundraising for similar ventures. In the past year, I've guided many female founders through the fundraising maze and witnessed firsthand the unparalleled challenges women endure compared to men. 👉🏽 An investor told one female founder, "I hope your husband is successful because you won't be." 👉🏽 Another was urged to shift focus from women to men in her women-centric company despite the unique challenges faced solely by women. 👉🏽 I recall a male investor challenging my pitch for Expectful, disputing the disparities faced by pregnant women in the US compared to other developed nations despite precise data on the soaring maternal mortality rates in the US. The discontent around an all-male-led women's health unicorn stems from not only the disparities in funding opportunities but also the gaslighting of women's needs in today's landscape. The positive? Despite these obstacles, we persevere. #womenshealth #femalefounder #unicorn

“According to a prior Ellevest survey, exactly 0% of women think the financial services industry was built with them in mind.)…Today, 94% of women believe their economic #power is being underestimated… When asked who would benefit most from the Great Wealth Transfer — which will put tens of trillions of dollars in the hands of women over the next few decades, and result in women owning the majority of wealth in the US — just 17% of men said it would be women. (And less than 1/2 of women surveyed — 42% — thought it would be women.)… Receiving a financial windfall increases women’s #confidence 1.8x — from 45% reporting that they’re confident with money, to 81%. And it means that they become more confident about their ability to manage their #money than even men are (at 77%)… It’s so significant that it obliterates the long-held taboos around women talking about money. 77% of women giving or receiving a financial windfall say they're comfortable talking about money with their families. This holds across generations, upending internalized money taboos. When women do reach out to the #wealthmanagement industry, 65% of #GenZ women — and close to 50% of #Millennial women — say they want to work with a woman financial advisor; but they don’t see themselves reflected there. Women with #agency over their own money simply spend and invest their money differently than men do… MacKenzie Scott (formerly MacKenzie Bezos, divorced) is donating her money to #nonprofits that align with her values, while her ex-husband amasses more wealth and goes to space in a suggestively shaped rocket. Laurene Powell Jobs (widowed) founded Emerson Collective to support social entrepreneurs and organizations working in #education and #immigration reform, social #justice, journalism, and #conservation. Melinda French Gates (divorced) founded Pivotal Ventures to invest in accelerating social #progress and #equality; she has a particular focus on #investing in the underrepresented (and is an investor in Ellevest). Our findings show that, in addition to people significantly underestimating how much women’s economic power is set to grow through the Great Wealth Transfer, we are also not prepared for the seismic changes that it could usher in. Changes for women, of course. And for everyone who does #business with women, and whose customers are women, and who's funded by women, and who's raised by women, and who's related to women. By this measure, the Great Wealth Transfer has the potential to reshape society — and society’s beliefs about women and #wealth — and will affect us all … whether or not you’re a recipient of a financial windfall.” All excerpts, images & #data from Sallie Krawcheck’s Ellevest team: https://lnkd.in/eCD2usvx #investing #philanthropy #assetmanagement #entrepreneurs #relationships #networking #community #leadership #inheritance #culture #belonging #diversity #equity #inclusion #cultureofmoney