Bright Minds

Bright Minds is a new podcast hosted by Money Manager and Trading Expert Patrick Munnelly. Through insightful conversations with notable guests, ranging from economic forecasters, to psychologists and experienced traders, we seek to answer the most commonly asked questions around trading and investing. Bright Minds is not just another podcast about trading: it goes deep into the psychological aspects of trading, such as tips on how to handle trading losses and on the trading mistakes to avoid. Listen or watch to the full episodes: www.tickmill.com/tools/bright-minds-podcast

Women in finance

By 2025, women are expected to control over 60% of the UK’s wealth, a trend that is not limited to the UK alone. Yet, there are still systemic barriers that limit the participation of women in the financial markets. Encouraging women to invest at the same rate as men could bring an additional $3.22 trillion in the global financial market. A reason more to discuss about it, considered that according to a Fidelity report, women investors outperformed men by a 0.4% on average over a 10-year period.

To dive deeper into the subject Patrick Munnelly invited Phoebe Chamier for a conversation. Phoebe manages bespoke discretionary portfolios for private clients, trustees, and financial advisors, and has over a decade's experience in financial services. She’s also the co-founder of Female Folio and co-host of the She-Wolf Investor Podcast.

A conversation with Phoebe Chamier, co-founder of Female Folio

Patrick: Phoebe, could you start by telling us a bit more about your background and career?

Phoebe: This topic is very dear to me. My focus on female investors began when I was a senior investment manager at Brooks Macdonald. I asked, "Why are there so few women managing money?" The industry average in the UK is around 17%. This question drove me to delve deeper into this issue.

Patrick: Why do you think there are fewer women investors?

Phoebe: It's a complex issue. The financial industry, dominated by men, has traditionally catered to men. However, women are earning and inheriting more wealth now, and by 2025, 60% of global wealth will be in the hands of women. Due to historical gender biases, many women lack the knowledge and confidence to invest. Additionally, some women feel averse to risk, which can deter them from investing.

Patrick: Could you share some of your experiences as a female investor in a predominantly male environment?

Phoebe: I've learned a lot from the men in this industry. However, there's room for more diversity. Early in my career, I had a female boss who led an all-male team, which was inspiring. It's crucial for young women entering the workplace to see female role models. I also had a female colleague who motivated me with her enthusiasm and drive.

Patrick: It's interesting that while women often manage the household budget, they are less involved in investing. Why do you think this is the case?

Phoebe: Women indeed manage a lot of the household's financial responsibility. They're adept at handling cash and budgeting, but not as comfortable with investing. We aim to ignite curiosity and provide an avenue for women to do more with their money. We women need to be more open about discussing finances. Men seem to talk about their investments and financial moves more freely, whereas women might find this more challenging.

Patrick: A Fidelity study indicated that women outperform men in investment at the margin, what do you believe contributes to this?

Phoebe: It's fascinating. Despite women's potential lack of confidence in investing, it's evident we have the capability. Investing might seem intimidating initially, but it isn't beyond the comprehension of most people. Research shows that women perform better when they invest, which can be attributed to factors such as patience. Women tend to focus on long-term goals, buying solid investments and holding on to them through turbulent times. Studies show that women trade less than men, which can be advantageous, as timing the market is challenging. Moreover, women often invest with a purpose beyond profit in mind - thinking about what the return on investment would allow them to do, such as retiring early, funding their children's education, or leaving a legacy.

Patrick: In my experience with female traders or investors, I've noticed that women tend to be more risk averse than men. Is that something you've observed?

Phoebe: Generally speaking, if we were to compare a husband's and wife's risk attitudes, the husband would likely score higher. However, this isn't always the case. Financial literacy plays a role here, as understanding financial markets and market cycles can affect risk tolerance. It's critical not to overgeneralize and label women as risk averse, as this can be self-fulfilling. Women might shy away from risk due to a lack of knowledge or a heightened risk awareness. Some practical reasons might make women more risk averse, such as their financial journey being bumpier due to gender pay gaps, career breaks for childcare, and longer life expectancy.

Patrick: Reflecting on your own journey, what practical advice would you give women wanting to delve into investment or trading?

Phoebe: My advice would be to start talking more about money and investing. Discuss it with your friends, family, and colleagues. The internet, while it has its pitfalls, can be a great resource to learn about investing.

For more information about Female Folio and Phoebe, visit www.femalefolio.com.

Questions, feedback, suggestions? Reach us at podcasts@tickmill.com