In 1993, women made up just 20% of the wealthiest 10% of the population. Whilst there have been a series of initiatives in both private and public sectors supporting the role women hold in the finance world, the gender disparity gap is still prominent.
EISA commissioned a nationally representative survey (1026 out of 2004 respondents were female) to identify what is causing such a shortage of women across the UK’s financial landscape.
The analysis makes for interesting reading. A few of the takeaways are:
- Research suggested that whilst female’s investment aspirations are positive, there is still a distinct failure in converting this into tangible financial action.
- Two million investment-minded women hold back on investing due to systematic sexism. This results in £62.9bn in potential economic activity lost each year.
- 19% of women also believe that the investment decision advice they receive is of a lower quality compared to men.
- 40% of women cited a lack of senior female role models as a significant factor as to why they did not pursue this career line.
- Research from the CFA Institute suggests 54% of investors believe a gender diverse team provides better investment performances – this is also supported by a 2015 McKinsey report, which showed mixed senior management teams outperformed single-sex competitors by 15%.
Mark Brownridge, Director of EISA, says that “EISA will continue to work with HMT, BEIS, NGOs and investment community members to ensure maximum awareness amongst our industry partners. It is of critical importance to work together from grass-roots level through to policy-backed motions… to close the ill-fated gender gap for good”.