The 25,000 female HNW investors represent a significant business opportunity.

France has one of the highest proportion of high net worth investors who are female (12.1 per cent) , while many of the country’s women millionaires use their own employers to handle wealth management, creating a challenge for outside firms, a report said. 

Information and analytics firm GlobalData said the 25,000 female HNW investors represent a significant business opportunity.

France is home to the largest global proportion of HNW women (33 per cent) that work in the financial services industry. However, this will create a challenge for wealth managers, as these HNW individuals are more likely to use their employer as their wealth provider. 

“In order to turn heads, wealth managers should introduce a strategy that meets the distinct needs of females, which is lacking in the French wealth industry,” GlobalData said. 

The findings come from the firm’s latest report Wealth in France: HNW Investors 2019.

In some ways France has become friendlier to HNW individuals under the presidency of Emmanuel Macron, elected a year ago. The president scrapped the wealth tax imposed by socialist predecessor, Francois Hollande, and also moved so that gains on financial investments are taxed at a flat rate of 30 per cent, rather than being progressively taxed. 

Strategy for women is lacking
So far, few firms have built wealth management offerings directed specifically at women in France, the report said.

“As the majority of France’s female HNW investors are of younger age compared to their male counterparts, they are likely to be managing multiple responsibilities such as careers and family life. Wealth managers will do well to target them with less time-consuming discretionary mandates, rather than advisory ones for example,” Sergel Woldemichael, wealth management analyst at GlobalData comments, said. 

“Within the wealth industry, it is becoming more apparent that female investors prefer to be in an environment with a healthy level of gender equality, or, receive advice from the same gender. With relatability being an important aspect when receiving financial advice, wealth managers that lack in female advisors should begin recruiting to improve their brand image and attract more female HNW individuals,” Woldenmichael said.