The data reveals the key differences between female and male SMSF investors, enabling advisers to gain insights into a fast-growing cohort of potential clients showing that stereotypical perceptions may not hold.
For example, female SMSF clients with AUSIEX accounts did trade less than males in 2023 and also traded fewer security types, but they had a higher average trade size (+1.3 per cent) than their male peers over the same period (6 per cent in 2022).
On a per-account basis, female SMSF accounts also had a higher monthly balance (3.5 per cent) than male SMSF accounts in December 2023 and in each month through all of 2023 and 2022. The number of female-advised SMSF accounts that traded was also steady year-on-year while fewer male-advised SMSFs traded in 2023 compared to 2022.
Brett Grant, head of product, customer experience and marketing at AUSIEX, said a powerful combination of increased financial independence and longevity means more females are likely to need advice than ever before in the coming decades.
Grant added that women are likely to be the primary beneficiaries of the intergenerational wealth transfer with various studies suggesting 60-70 per cent of wealth in the US and UK, respectively, is likely to be inherited by females over the coming years and is reasonable to expect a similar trend in Australia.
AUSIEX’s research also found that female-advised SMSF accounts favoured ordinary shares in 2023 (49.12 per cent of total trades while males were 51.14 per cent) followed by ETFs (19.73 per cent v 19.12 per cent) and local call options (10.8 per cent).
This was also markedly different to their self-directed (non-advised) female SMSF counterparts, who showed a significantly stronger preference for trading ordinary shares only, with ETFs making up a much smaller proportion of total trades.
Advised female SMSF accounts also had the highest allocation to hybrid securities (7.6 per cent) across all accounts (SMSF/non-SMSF and self-directed and advised).
While the number of female SMSF investors using an adviser is rising, it is still relatively low at just 19.6 per cent of the total advised SMSF holdings among AUSIEX clients, highlighting an untapped opportunity for financial planners.
“The question for advisers as the intergenerational wealth transfer takes place is how to gain new female clients and maintain existing ones too. It is wrong to simply assume widows or divorced women will retain their services when single or post-inheritance, as research suggests a large majority will consider seeking a new adviser,” said Grant.
Generation X females are another business opportunity for SMSF advisers as a relatively low number (compared to males) seek advice for SMSF investments, with this cohort also accounting for a declining share of new SMSF accounts created year on year, according to the AUSIEX analysis.
“Simplistic gender assumptions will likely prove insufficient for advisers seeking to build female clientele. The answer instead lies in data which enables advisers to pinpoint the real motivations of female investors – and hence what they need from an adviser to reach their goals,” he said.
”This data and new trading technology with extensive functionality can really equip advisers and planners to serve the growing number of women seeking advice.”
