Sat, Mar 08, 2014 - Page 8 News List

Charting women’s wealth in Asia

By Bonnie Qiu

In some ways, the story of Asia’s transformation over the past four decades is a story of women. From the young women who left their homes to work in the factories of Shenzhen, Ayutthaya or Penang in the 1970s and 1980s, to the pioneers who blazed a trail through Harvard, Oxford and the Sorbonne, they have reshaped the region.

Today, they are starting to reap the rewards of their hard work. Educated, empowered and employed in ways their grandmothers could only dream about, a new class of women are bending the region’s rich cultural legacy to a more egalitarian and prosperous future. A report last year by Grant Thornton showed that 31 percent of senior management positions in Taiwan were held by women compared with 29 percent in Asian countries and 24 percent worldwide. Recently, Forbes announced its top 50 list of power businesswomen for this year, two of whom are Taiwanese.

More women are not only making their own money — they are keeping control of it when they marry. They are not only investing their assets, they are running asset management firms, and research shows that on average they are running them more successfully than their male peers.

The financial power now exercised by women is changing consumer and investment markets beyond recognition. A report from the Boston Consulting Group estimated that the amount of wealth controlled by women around the world would grow by 8 percent annually from year-end 2009 through this year, led by women in emerging markets.

There is copious anecdotal evidence to back this up. Harald Wester, the chief executive of the Italian supercar manufacturer Maserati, said last year that 40 percent of his customers in China are “young businesswomen who love European craftsmanship and want to be chauffeured in their new Quattroportes.”

The growing affluence of Asian women is partially a factor of Asia getting broadly wealthier, but that effect has been amplified by changing social attitudes, better access to education, greater social mobility and a new class of female entrepreneurs.

However, if Asia is becoming a continent of more equal opportunities, it would be a mistake to think its women want exactly the same thing as men.

Women treat wealth differently.

They aspire to wealth for different reasons than men do, and they have distinctively different — and in many cases more successful — investment patterns.

For HSBC Banks’ increasingly affluent female clients, wealth is less of an end in itself than a buffer against hardship, a door to new opportunities and a resource to support their families. A pattern is emerging.

A young woman might start off conservatively with savings and already be in a position to buy an investment property in her 20s for the stable income before becoming more active in the equities market in her 30s and 40s as she generates funds for education and family travel, before returning to property in her 50s and 60s for retirement income and maybe a residence for her parents or children.

When it comes to personal investing, women tend to show greater self-discipline in sticking to their strategies, avoiding the problem of over-trading.

University of Michigan research a few years ago showed that on average men trade 56 percent more than women, which not only carries costs in and of itself, but also significantly increases the probability of so-called market timing: buying at the top of the market and selling at the bottom.

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