The financial future is female

Opinion

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This article was published 02/03/2024 (577 days ago), so information in it may no longer be current.

It’s a man’s world no longer… Well, arguably so.

Many women and men with a critical eye on politics, economics and social change could debate that, though much progress has been made, there have often been steps backward toward gender parity.

Yet in the world of finance significant progress is being made, and it can be measured in dollars and cents.

A recent RBC Wealth Management blog post for the upcoming International Women’s Day (March 8) — this year’s theme is ‘Inspire Inclusion’ — cited not just the box-office success of the Barbie movie, and the world’s top-grossing concert tours and albums by Taylor Swift and Beyoncé.

It also points to 80 per cent of the world’s purchase decisions being made by women, contributing to 40 per cent of global gross domestic product. In Canada, women will control $4 trillion in wealth by 2028, nearly double today’s total.

That share of wealth grows bigger by the day with the slow march toward gender parity.

For decades already, women have been shattering stereotypes in finance and establishing beachheads for growth in investment, and more broadly the economy — all once male-dominated.

Yet in some corners of finance — such as private equity— the air remains heavy with man musk.

“I would not say it’s common, unfortunately,” says Helen Hurlbut, chief financial officer and co-founder of Equiton Partners, a Burlington, Ont.,-based private equity firm that manages private real estate funds with more than $1 billion in assets.

“I am fortunate, a co-founder and obviously a female, so finally, all my experience has paid off — and I’ve had a lot of it.”

She notes Equiton — which has a focus on developing multi-family and has provided double-digit percentage growth to investors since 2016 — is an inclusive, egalitarian workplace.

But Hurlbut — who has worked for decades in real estate development — notes the journey to where she is today has at times felt like a tightrope.

“You have to prove yourself throughout your career and learn that aspect of sitting around the table balancing being very politically correct, very nice and, yet, very aggressive at the same time.”

Diversity — including a workforce reflecting the population — is a strength, she notes.

“Everybody brings different views.”

Hurlbut adds diversity does not only mean more women at the table, but people of different races, cultures and abilities.

“I’d much prefer a diverse group developing different ideas (to address challenges) than everyone being the same, agreeing on the same things.”

IG Wealth Management — one of the largest wealth management companies in Canada — has also long promoted gender parity and greater workforce diversity.

“It’s important for our advisers to reflect the communities they’re serving,” says Christine Van Cauwenberghe, head of financial planning at IG Wealth Management.

About 40 per cent of the more than 300 advisers IG has hired since 2020 are women. As well, its senior management is about 30 to 40 per cent representation.

“We’re making strides, though it’s not where we would ultimately like to be,” she says, adding gender parity is IG’s goal.

It’s a worthy goal considering females make up slightly more than half of the nation’s population.

In turn, many women today are likely to seek women advisers, says Toronto-based certified financial planner Cindy Marques, whose client base is about 90 per cent women.

“I do not actively prospect for new clients… they (women) tend to find me,” says the co-founder of MakeCents.

She notes part of the appeal of the women-led, fee-only firm is women are often more comfortable working with female advisers given the issues many face, including fertility challenges that involve planning for the cost of embryo freezing and in vitro fertilization. As well, MakeCents often helps with cash flow planning for extended periods from work during pregnancy and post-partum, or taking time off to care for aging parents.

It’s not just financial planning; more women are seeking out female investment advisers, too, says senior portfolio manager Patti Dolan with Wellington-Altus Private Wealth Inc. in Calgary, who started her career in the mid-1990s.

“When I started, only a handful of women worked in the industry — and it was tough,” Dolan says, noting she worked 12-hour days while raising a family.

“I was called the ‘cold-call cowgirl’ — that is how you got your business.”

Yet demand for women advisers quickly grew as more professional, high-income earning women sought investment help, often only to find a dearth of choice — partly due to barriers for women getting into the business.

“Now, we’re seeing more ways to get into the business, like being hired as an associate,” Dolan says, noting she, and other female and male colleagues mentor this new generation.

What’s more, women see themselves as investors because of the success of other women, including Cathie Wood, chief executive officer of Ark Invest.

It has shaken up Wall Street, offering low-cost, actively managed exchange-traded funds that manage billions of dollars, focused on fast-growing themes such as artificial intelligence, blockchain and electric vehicles. As well, millions of investors look to see what Ark portfolios hold, seeking the next-big-investment ideas.

Many other women are forging paths, including in responsible investing, Dolan’s specialty.

“Definitely, more women are interested in responsible investing,” she says.

Responsible investing’s incremental growth of the last two decades is just another illustration regarding who the industry’s clients truly are today, she adds.

Those clients are increasingly women, Marques notes.

“It (gender parity) is important in any industry — but especially finance, since historically men were expected to earn/manage the money and women were entirely dependent upon them,” she says.

“That, however, is no longer our reality.”

Joel Schlesinger is a Winnipeg-based freelance journalist

joelschles@gmail.com