Women are more likely to leave an advisor from a lack of personal connection than from poor financial performance, one survey showed.Getty Images
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By 2028, Canadian women are on track to control $4-trillion in assets, almost doubling the $2.2-trillion they control today, according to a recent Sun Life Global Investments (SLGI) report. To suit their needs and keep their business, financial advisors need to know how these investors differ from their male counterparts.
“Women are not only looking at the quest for higher returns. They want to make sure they’re invested in companies that integrate ESG factors into their policies and decisions, and are seeking ESG accountability,” says Solène Hanquier, senior director and practice leader, responsible investing, at National Bank Investments Inc. in Montreal.
In particular, studies show that women are drawn to ESG themes such as action on climate change and fair wages for workers. Women also want to see themselves reflected in Canada’s boardrooms and see their shareholder voting power as a way to make that happen, Ms. Hanquier adds. She calls this part of a trend of “financial feminism.”
Seeking investments that promote sustainability and make a positive impact on the world isn’t the only priority. As women gain more private wealth and financial literacy around investing, they also value guidance highly, says Angela D’Angelo, vice-president, training and client experience, at National Bank of Canada in Montreal.
“The primary concern advisors have today is getting women more engaged in making financial decisions,” says Ms. D’Angelo, who’s in charge of growing the client segment of women investors and professional women at the bank.
It’s not just a matter of confidence but of being on the same page. Many women haven’t felt served by their advisor. A report from New York Life Investments, a global asset firm, noted that 70 per cent of women with investible household assets of about $250,000 have an advisor. But 38 per cent of those women are less than satisfied with them, and 67 per cent say they will change advisors as a result of a lack of personal connection.
In addition, the aforementioned SLGI report found that 80 per cent of widows switched advisors within a year of their husband’s death.
“So many women leave what they call, ‘their husband’s advisor’ if there’s no connection [to the advisor],” says Julie Petrera, senior strategist for client needs at Edward Jones Canada in Toronto. “It’s about not only understanding what’s important to them but making sure they feel comfortable and feel like they’re part of the relationship from the start.”
Women aren’t a niche market and shouldn’t be looked at as such, Ms. Petrera notes: “How we work with women clients, I would suggest, is no different than how we work with all clients. We want to fully understand who they are, what’s important to them and what their goals are.”
She says women can want more detailed conversations about what their money can bring them and their families, beyond the numbers or the returns.
“They’re more interested in what does this money represent? What does this money enable me to do? Who does this money enable me to support? What freedom, flexibility or opportunity do these investments get me?” Ms. Petrera says.
As women investors rise in numbers and wield more assets, their advisors’ fundamental role remains to discover what’s important to them and what drives their decisions, agrees Sybil Verch, executive vice president and head of private client solutions at Raymond James Ltd. in Victoria. That also adds to a more sustainable advisor-client relationship.
“When it comes to investing, there’s no secret sauce for a gender, sexual orientation, ethnic background, religious group or anything,” Ms. Verch says. “Investing should be personal and customized for the investor. That’s a really important message to state.”
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TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
