Wall Street Italia | June 2023
The daily encounter with volatility and uncertainty brings to light meaningful differences between male and female investors, as evidenced by a survey conducted by FINER for AllianceBernstein on a sample of end investors and financial advisors based in Italy and other European countries.
First of all, the survey revealed that in Italy the number of female financial advisors remains lower as compared to other European countries: in Italy, one financial advisor out of five is a woman, one out of three in France and two out of five in Spain.
Moreover, the percentage of women among end investors is inversely proportional to wealth. In Italy, the gender ratio within the mass market segment is 55% (men) to 45% (women); on the other hand, the gender ratio within the Private segment is 78% (men) to 22% (women). In France, Germany and Spain the gender ratio tends to be more equitable.
Ultimately, the survey allowed for the identification of four end investor profiles.
Delegators regard investment decisions with worry and uncertainty. Therefore, they grant a strong mandate to their financial advisors, who act as their main reference point.
Partners deal with investment decisions with a calm and positive attitude. They show an open and cooperative spirit towards their financial advisors, who act as a reference point for discussion.
Controllers mitigate the fear liked to investment management through the ongoing monitoring of performances, while financial advisors support their decision-making autonomy.
Finally, protagonists address investment decisions with confidence and joy. In this case, financial advisors act as discussants and sources of support.
The survey revealed that women generally fall into the categories of delegators and partners, while men fall into the categories of controllers and protagonists.
Similarly, the survey allowed for the identification of three different work styles among financial professionals: strikers, midfielders, and defenders.
Strikers are proactive and resourceful with their clients. They tend to work autonomously as free agents, rather than working in team.
Defenders are good managers of acquired clients, however they tend to be less proactive when it comes to seeking new clients.
Midfielders represent a good middle ground between the two extremes. They tend to be more prone to working in team, in which they often play the role of leaders.
Once again, the survey brings to light a gender difference: men generally fall into the category of strikers, while women generally fall into the categories of midfielders and defenders.
When it comes to market volatility and risk propensity, women tend to be more clear headed and less prone to take risks than men.
Among the many financial information channels employed by women, the most important are personal channels related to the relationship with financial professionals and with their circles of friends and family. As for the frequency of contact, men tend to be more apprehensive and need more frequent contacts.
Moreover, gender differences influence the attitude towards investments, risk and volatility.
A high level of financial education – as that shared by male and female professionals of financial consultancy – can reduce gender difference, enhancing the strengths of both genders to the benefit of both women and men.
Nicola Ronchetti