Women will become a significant force in investment decision-making in the Irish market in the future, according to NCB Stockbrokers.
In a report, Women, the Economy and the Stock Market, NCB found Irish women were now in command of increasing wealth arising from their growing financial independence driven by increased participation in the workforce and changes in household composition, family law, personal tax and pensions legislation. The findings have implications for financial sector companies and the services they offer clients.
Based on a detailed analysis of labour force data over the past decade, the report found that more than 80 per cent of women will have primary responsibility for their household's finances at some point of their lives.
The report found that female participation in the labour force had increased significantly over the past decade.
"Female participation has increased by 60 per cent over the past 10 years with women accounting for nearly two-thirds of the total increase in the labour force. Importantly, 30 per cent of female employment is at the higher-paid managerial and professional level," according to report co-author, NCB chief economist Dr Dermot O'Brien.
NCB research manager Ms Jane Riordan said the study examined the experience in the US where women accounted for a significant proportion of the overall pool of personal wealth. The Irish market was likely to follow the same trend, with women taking an increasingly active role in the investment decision-making process, she said.
US analysis of the investment decisions of individuals has found differences in the approaches of men and women.
"Women were found to be more conservative than men in terms of equity investment, preferring publicly quoted stocks to unquoted investments," according to Ms Linda Spillane, a portfolio manager in the NCB private client division.
Women generally were more likely to build up a broader spread of investment, with a higher weighting in lower-risk investment products than men, she explained. "They are generally more prudent, placing greater emphasis on research and information before making an investment decision," she added.
