Women are more likely to invest in green finance and have better-performing portfolios, report says
- Women are twice as likely to say environmental, social, and governance factors are important to their investment choices, according to a UBS report
- Women’s investments outperformed men’s by 1.8 per cent over the last three years, but women tend to invest less money
Women are more interested in investing in green finance than men, and their stock picks tend to perform better because of a more disciplined and less speculative approach, according to analysts.
Women still tend to invest less money than men, but their investments are growing faster.
In Asia excluding Japan, women’s wealth in 2020 was US$4.8 trillion, roughly half the US$9.8 trillion in wealth held by men. Women’s wealth is projected to increase to US$7.3 trillion by 2025, compared with US$13.9 trillion for men, according to data from Boston Consulting Group.
This would mean a compound annual growth rate of 8.8 per cent for women and just 7.4 per cent for men.
This trend is expected to add more money to the capital market, particularly in ESG investments, according to a separate study released by BNY Mellon Investment Management in February.
If women invested the same amount of money as men, there would have been an additional US$3.22 trillion in capital to invest globally as of February, the BNY study estimated.
Over the last three years, women’s investments outperformed those of men by 1.8 per cent annually, according to an analysis of 2,800 investors of Barclays Bank from UBS, which cited a 2018 report from Warwick Business School in England.