Fidelity Women Wealth Management Study Reveals Need for Change in Attitudes

Hong Kong, 16 November 2011 – Fidelity Worldwide Investment (Fidelity) has released its Women Wealth Management Study, as part of its Investor Education Series. Having interviewed 517 single and married women, the survey aims to i) examine Hong Kong women’s current financial planning behaviour and attitudes, ii) understand women’s roles and attitudes in management of individual versus household wealth, and iii) explore areas of opportunity where Fidelity can help women to better plan their personal or household finance. Hong Kong’s female population aged 25-54 now accounts for approximately 30% (1,991,500) of the entire population versus males of the same age group at approximately 22% (1,555,300)1, so their attitudes and investment behaviour are more important than ever.

 

The survey found that Hong Kong women tend to adopt a conservative to moderate mindset in managing their investment, and believe they are prudent, risk-averse and informed investors. They believe that men are more knowledgeable, experienced, better informed and are more impulsive. When making investment decisions, more married women believe men make smarter, more prudent decisions. Over 35% of women do not keep track of how much money they won or lost over the past two years.

 

The survey also reveals that women’s wealth grows quickly when they step into mid-30s.   22% of women between the age of 35 and 44 have HK$1 million of liquid assets or more, versus only 5% of women between 25 to 34 have HK$1 million or more overall. Married women also have more liquid assets; with 1 in 4 having HK$1 million or more. In fact, 42% of them actually manage the family’s entire reserve, while some 30% earn more than their spouse, emphasizing the important role that women play in managing the overall household wealth.

Most women seek a conservative asset mix of bank deposits with some stock investments. However, it appears that more women have realized that putting money in bank deposits will not work.  While 84% of them will put more money into investment in the next two years, only 57% will place money in deposits.  Other popular investment products are stocks, foreign exchange and gold.

 

“It is time to call for a change in women’s overall wealth management mindset,” said Kerry Ching, Country Head, Hong Kong of Fidelity. “As owners of considerable disposable income and resources of their own, and often stewards of family resources, they can make a difference to the wealth of their family and their own by realizing that they are as smart as others and adopt investment strategy actively and early in their life. The final conclusions are that women are assuming a more important role in managing their own wealth as well as their family wealth. In general, most of them adopt conservative strategies in investing. They should equip themselves to make investment decisions and seek professional help where necessary, but above all be confident in their own judgement.

 

Fidelity proposes the following recommendations for single women to be well prepared for their future and for married women to provide better protection for their lives and their families:

  • Disciplined savings & Start early
  • Balance risk and return (conservative strategy may not work)
  • Adopt different strategies for their own personal as well as family’s wealth.
  • Seek trustworthy assistance and professional help
  • Manage and review portfolios regularly 

1       Source: Demographic Statistics Section, Census and Statistics Department Mid-2011


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About Fidelity Worldwide Investment

Fidelity Worldwide Investment is a global leader in asset management, providing investment products and services to individuals and institutions in the UK, continental Europe, the Middle East and Asia Pacific. Established in 1969, the company has over 5,000 staff in 24 locations and manages or administers client assets of US$257.3bn as at 30 September 2011. It has over 7 million customer holdings and manages more than 740 equity, fixed income, property and asset allocation funds. The company’s fund managers receive research from one of the largest proprietary research teams, based in 12 countries around the world. Fidelity Worldwide Investment is an independent asset management company which is privately owned.

 

Media Contacts:

Rowena Kwok 

 

Jaime Leung

Head of Corporate Communications

 

Corporate Communications Manager

Tel: +852 2629 2782

 

Tel: +852 2629 2461

Email: rowena.kwok@fil.com

 

Email: jaime.leung@fil.com