Women in wealth
This report assesses female representation and experiences within advisory roles, tracking the progress of women’s promotion, retention, and exit rates over the past three years.
Bridging the gender gap in Australia’s private wealth sector
Women in wealth: The status of gender equality in Australian private wealth firms offers a comprehensive overview of gender diversity and talent mobility within a sample of Australia’s largest wealth management firms.
We find gender equality within Australia’s private wealth sector lags behind other areas of investment management, but arguably, it has the most to gain. With an impending intergenerational transfer of wealth to women and the rising demand for female advisors from these high-net-worth women, there is a compelling business case for accelerated gender diversity in wealth.
Overall gender parity is possible by 2030 if women are appointed, promoted, and retained at equal rates to men. However, key adviser levels remain stagnant, with women leaving at almost the same rate they are joining.
Now is the time for private wealth managers to deepen their commitment to attracting and developing female advisers to meet the industry’s changing demands.
Women in wealth report
In Australia’s private wealth sector, achieving gender equality is both a strategic imperative and a significant growth opportunity. This report tracks the status of gender equality in Australian private wealth teams.
Increasing the number of female private wealth advisers will take bold leadership, a long-term commitment, and collaborating across industry to tackle the barriers that stop women from successfully applying for these roles that in many ways are ideally suited to them.
Key findings
- Women currently make up 25% of advice roles in the sector, with strong representation at the entry levels, but representation drops to 13% at the senior levels.
- Despite increased entry-level female recruitment, men are still more likely to be promoted, and women are more likely to leave, particularly at the senior associate and adviser levels.
- Barriers such as long career progression timelines, male-dominated environments, and subtle practices that exclude or diminish women can hinder their progress. Also, young women are often unaware of private wealth as a career, making recruiting women into associate roles harder.
- The good news is that women who overcome these barriers and progress to advice roles thrive.
- Investment functions within private wealth teams are faring better than advisory and have achieved gender parity with 42% female representation at the analyst and senior analyst levels. However, men are still promoted more, and women are more likely to leave, especially at the senior analyst level.
- By equalising the appointment, promotion, and retention rates of women and men in the wealth career stream, overall gender parity is possible by 2030. If current appointment, promotion, and retention rates are maintained, we forecast women would comprise only 32% overall in 2030.
We're thrilled that in our current wealth adviser pathway program, 5 out of 6 participants are women. Tackling family and gender barriers is part of the challenge, but we're excited for the potential ahead for the wealth industry.
"While having senior leaders who are women in our business has boosted the commitment to gender equity, real progress demands active and effective advocacy from all top leaders, not just women."
I've seen a shift from limited opportunities and acknowledgment for women in wealth, to an environment where we're now clearly signposting what they can achieve and engaging in proactive dialogue.
Women network differently and cultivate different types of connections, so training must reflect these nuances and not just aim to turn women into the men.
Key challenges to overcome
Female advisers and associates love what they do and are passionate about forging their path in the industry; however, barriers and challenges persist across three pivotal areas: system, self, and leadership.
System
Many young women are unaware of career opportunities in private wealth, leading to a male-dominated talent pipeline. Those who enter the field face lengthy career progression timelines, often dependent on finding a supportive adviser willing to back their potential. In a male-dominated environment with a male-centric networking culture, this support can be hard to secure, making the industry feel exclusionary to women.
Self
The timeline for advancing into an adviser role often coincides with the period when many women start a family. Balancing career demands with family responsibilities can interrupt professional momentum, strain client relationships, and create team tensions. Additionally, the male-centric sales environment and a lack of established networks can make it challenging for women to build confidence and succeed in client acquisition.
Leaders
Securing the sponsorship and endorsement of a senior adviser is essential for progressing into an advisory role, but this support is often inconsistent and can favour male associates. Female associates are frequently mislabelled and overlooked, undermining their confidence and reputation with clients. The lack of senior female role models also limits their ability to envision and navigate their career paths.
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Solutions for a more diverse and human-centred investment industry
To achieve gender parity and build a stronger private wealth industry, we’ve made 11 recommendations within the report aimed at attracting more women into investments and creating the culture where they want to stay.
Out of those recommendations, here are four ways Future IM/Pact can help:
Grassroots talent development
Build a pipeline of female talent from the ground up by inspiring and enabling women at university and in key career feeder roles to pursue a career in private wealth.
Mid-level female investment
Support high-potential female associates to build their confidence, career conviction and influencing skills to better equip them to apply and secure an advisory role.
Role models and mentors
Build a critical mass of senior female advisors across the industry to inspire, mentor and role model leadership for women coming up the ranks.
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Leadership and team programs
Develop the emotional intelligence and leadership capability of leaders so they can advocate for women, and build team cultures where everyone feels valued.
Read the report and share it with your teams
The Women in wealth report contains insights and practical recommendations to enhance your people and culture agenda. Workplaces that work better for women work better for everyone. We encourage you to download the report and share it with your teams. Connect with us today to further explore how we can help you attract and retain top female talent while building diverse, high-trust teams.
