Dubai: Women accounted for 27 per cent of the global high net worth individual (HNWI) population in 2010, up from 24 per cent in 2008, according to the World Wealth Report.
Again there are differences by region, most often reflecting cultural and business trends, but the number of female HNWIs is quite likely to rise as the number of women entrepreneurs and high earners continues to expand, the report said.
In North America, where women are well-established in the business world, women account for 37 per cent of the total HNWI population.
Sharia protects women's assets
In the Middle East, 86 per cent of HNWIs are men, but Sharia law protects women's assets, creating a specialised need for wealth-management services for female HNWIs.
Firms and advisers will need to consider whether the value proposition they offer to female HNWIs is apt to retain and attract assets under management (AuM).
At present, for example, firms initially retain a seemingly impressive 66 per cent of all assets transferred to a woman from a man, but the question is whether they can retain them for the longer term.
Trust for heirs
"It is important for advisers to understand a female HNWI's economic priorities, risk appetites, and other investment goals as they may differ significantly from the average male HNW client when, for example, she has outlived a spouse or a trust has already been established for heirs," said Karthikeyan Rajendran, sales director for the Middle East, Global Financial Services, Capgemini.
Advisers will also need to comprehend fully the "network of influence" on which their female HNW clients rely in making such financial decisions. Firms could, for example, leverage team-based approaches to combine complementary strengths and different perspectives to iterate their response to the complex needs of female HNWIs.
