Wealthy women are sitting on the sidelines, eager to explore alternative investments, but their advisors are missing the mark. This is the intriguing finding from a recent survey by Brookfield's Alts Institute, which highlights a significant opportunity in the private wealth management space.
The survey, conducted by CoreData, reveals that high-net-worth women investors in the US and Canada with at least $2.5 million in household investable assets are ready to embrace alternative investments. However, a staggering 56% of female respondents (44% currently hold alternatives) are not yet invested, primarily because their advisors have never discussed these options with them.
This finding is particularly intriguing given the alignment between women's investment instincts and the nature of alternative investments. The survey shows that women prioritize long-term investing and diversification, two key principles that private markets strategies excel at addressing. This suggests that women are already predisposed to the benefits of alternatives, making it a matter of advisors bridging the gap.
What's more, the survey uncovers a strong desire for advisor engagement. A recommendation from their advisor is the top catalyst for women to invest in alternatives (69%). This number rises to 74% when advisors frame the conversation around the portfolio's overall benefits rather than promoting the product itself.
This data highlights a critical need for advisors to step up their game and educate themselves on alternative investments. Women investors are not just passive recipients of advice; they want to understand their investments and be proactively guided towards new opportunities. As John Sweeney, CEO of Brookfield's private wealth business, notes, advisors need to be equipped with the right tools to engage women investors effectively.
The implications of this survey are far-reaching. As the Great Wealth Transfer continues, women are becoming increasingly influential in managing wealth. By failing to discuss alternatives, advisors risk missing out on a significant client segment. This survey underscores the importance of advisors adapting their strategies to meet the evolving needs and interests of wealthy women investors.
