Behavioural Finance Consulting

Advisory Services

Women Are Changing the World of Investment

Women are emerging as powerful forces in the investment world, set to control nearly 45% of assets under management in Western Europe by 2030. Despite this growth, financial services often fail to address women’s distinct needs and preferences. Women typically favour cautious, diversified, and low-risk investments, with a strong interest in sustainability and ESG-focused solutions. However, barriers such as limited funds, complex financial jargon, and a lack of visible role models hinder their full participation. Addressing these challenges and aligning financial services with women’s priorities—such as long-term planning and wealth preservation—is crucial for fostering financial inclusion and driving meaningful change in the investment landscape.

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Investment Suitability and Portfolio Reporting – Part 2

Investment suitability is strongly influenced by how portfolio information is presented. Variations in content and format can shape investors’ risk perception and tolerance, potentially leading to skewed assessments and suboptimal investment choices. Discrepancies in presenting returns (net vs. cumulative, percentages vs. monetary), risk ranking, performance order, and format (tables vs. graphs) can alter investor judgement, impacting their understanding of risk and potential gains. A transparent, consistent presentation framework that minimises cognitive biases and supports informed decision-making is essential to align investments with investors’ true risk preferences and financial goals.

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Investment Suitability and Portfolio Reporting – Part 1

Investment suitability depends on consistent, transparent portfolio reporting. Variations in content, such as differing amounts, portfolio options, time horizons, and risk periods, can lead to misaligned risk perceptions and suboptimal choices. By standardising portfolio presentation and addressing cognitive biases, financial firms empower investors to make decisions aligned with their true preferences and tolerance for risk.

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