Investment

How ‘financial feminism’ is upending the investment landscape

Published

2 years ago

April 25, 2023

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.

For example, the Responsible Investment Association’s 2022 Investor Opinion Survey found that women are more likely than men to be attracted to firms and funds that boast strong environmental, social and governance (ESG) performance.

“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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Investment

Tesla shares soar more than 14% as Trump win is seen boosting Elon Musk’s electric vehicle company

Published

5 days ago

November 6, 2024

Anne Joseph

NEW YORK (AP) — Shares of Tesla soared Wednesday as investors bet that the electric vehicle maker and its CEO Elon Musk will benefit from Donald Trump’s return to the White House.

Tesla stands to make significant gains under a Trump administration with the threat of diminished subsidies for alternative energy and electric vehicles doing the most harm to smaller competitors. Trump’s plans for extensive tariffs on Chinese imports make it less likely that Chinese EVs will be sold in bulk in the U.S. anytime soon.

“Tesla has the scale and scope that is unmatched,” said Wedbush analyst Dan Ives, in a note to investors. “This dynamic could give Musk and Tesla a clear competitive advantage in a non-EV subsidy environment, coupled by likely higher China tariffs that would continue to push away cheaper Chinese EV players.”

Tesla shares jumped 14.8% Wednesday while shares of rival electric vehicle makers tumbled. Nio, based in Shanghai, fell 5.3%. Shares of electric truck maker Rivian dropped 8.3% and Lucid Group fell 5.3%.

Tesla dominates sales of electric vehicles in the U.S, with 48.9% in market share through the middle of 2024, according to the U.S. Energy Information Administration.

Subsidies for clean energy are part of the Inflation Reduction Act, signed into law by President Joe Biden in 2022. It included tax credits for manufacturing, along with tax credits for consumers of electric vehicles.

Musk was one of Trump’s biggest donors, spending at least $119 million mobilizing Trump’s supporters to back the Republican nominee. He also pledged to give away $1 million a day to voters signing a petition for his political action committee.

In some ways, it has been a rocky year for Tesla, with sales and profit declining through the first half of the year. Profit did rise 17.3% in the third quarter.

The U.S. opened an investigation into the company’s “Full Self-Driving” system after reports of crashes in low-visibility conditions, including one that killed a pedestrian. The investigation covers roughly 2.4 million Teslas from the 2016 through 2024 model years.

And investors sent company shares tumbling last month after Tesla unveiled its long-awaited robotaxi at a Hollywood studio Thursday night, seeing not much progress at Tesla on autonomous vehicles while other companies have been making notable progress.

Tesla began selling the software, which is called “Full Self-Driving,” nine years ago. But there are doubts about its reliability.

The stock is now showing a 16.1% gain for the year after rising the past two days.

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Investment

S&P/TSX composite up more than 100 points, U.S. stock markets mixed

Published

4 weeks ago

October 16, 2024

Anne Joseph

TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.

The S&P/TSX composite index was up 103.40 points at 24,542.48.

In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.

The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.

The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.

The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.

This report by The Canadian Press was first published Oct. 16, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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Economy

S&P/TSX up more than 200 points, U.S. markets also higher

Published

1 month ago

October 11, 2024

Anne Joseph

TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.

The S&P/TSX composite index was up 205.86 points at 24,508.12.

In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.

The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.

The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.

The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.

This report by The Canadian Press was first published Oct. 11, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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