WOMEN POLISH FINANCIAL SKILL

There may be no gender discrimination in the topsy-turvy game of investing but the trading floor is a fair reflection of its male dominance.

In the horror show of American financial statistics these days there is a social sideliner that should give women a real fright and cause them to invest in some alternative bedside reading.

Take the following dismal snapshot:

•47 per cent of women over the age of 50 are single.
•50 per cent of marriages end in divorce.
•In the first year after a divorce, a woman's standard of living drops an average of 73 per cent.
•Of the elderly living in poverty, 3 out of 4 are women and 80 per cent of them were not poor when they were partnered.
•Nearly 7 out of 10 women will at some time live in poverty.
Admittedly, state supports in New Zealand are a considerable cushion to separation and divorce but domestic purposes benefit, Working for Families tax credits and NZ Superannuation aside, it still isn't a pretty picture.

On both sides of the Pacific, the majority of single-parent families are led by women. And regardless of geography, women all over the world still get paid less than men.

Those two facts alone would suggest that as a woman, it is not a bad idea to get a grasp on financial markets or at least learn the difference between equities and fixed interest investments and their varying rates of return.

Finance books tailoring to this particular social issue are becoming increasingly popular, as are women-only networking groups and clubs dedicated to advancing financial literacy.

Stockbroker Craigs Investment Partners (formerly ABN AMRO Craigs) is the latest to get in to the financial sector's equivalent of the publishing industry chick-lit trend.

Last year, the investment house began offering free seminars for women to help feed the appetite for financial acumen that extends beyond household budgeting.

Since the bi-monthly breakfast sessions first kicked off in Auckland, they have since spread to three other locations; Tauranga, Palmerston North and Christchurch.

Last Thursday marked the first in the South Island when more than 35 women turned out for a 7.30am financial primer in Christchurch.

After a light breakfast, stockbrokers Jennie Moreton and Alexandra Dalzell served up a buffet of investment tidbits, from basic terminology to their favoured equity picks.

"It's gaining quite a bit of momentum because everybody's finding it to be a success in their region," Ms Moreton says of the initiative.

The investment adviser suggests the popularity of the women's wealth seminars is partly because they are led by women – except in Palmerston North where, ironically, they couldn't find a female advisor to do it.

Another reason is that women want to become more empowered when it comes to their financial affairs.

So what does a woman bring to the table that a man doesn't in a profession that is based solidly around numbers?

"I think it's an empathy," says a reflective Ms Moreton.

"I think that women advisers – and this is no detriment to my male colleagues – may be a bit more interested in building relationships beyond the advisory relationships."

Not necessarily on a buddy- buddy level, but in terms of a dialogue that cuts beyond dollars and cents and goes to the heart of the nitty-gritty personal issues that determine our financial requirements in life.

"In this industry, one of the things that is emphasised is the get- to-know-your client thing," says Ms Moreton. "It's knowing your client's whole situation so the advice you are giving them isn't in isolation to the rest of their life. If they want to travel every year in their retirement, then you've got to make sure they're investing in things that give them enough income to.

"And I think we have a really good understanding of their needs, objectives and situation to give them appropriate advice."

Andrew Withers, an investment advisor with Forsyth Barr in Christchurch, challenged the notion that women were inherently more empathetic as advisers.

"It's personality, not gender," mused Mr Withers.

"In our industry, it's not one size fits all. In a lot of cases they might be right, women might be more comfortable talking to another but you find a space in the markets where there are people who you will get on with and those who you don't.

"I don't think it's necessarily down gender lines at all."

If the alleged female proclivity to memorise birthdates and grandchildren's names is an asset, so too is Ms Moreton's and Ms Dalzell's capacity to translate the financial jargon without being patronising.

They take the fear factor out of investing by explaining the principles and concepts underlying their investment philosophy approach in everyday terms.

"It's not rocket science," Ms Dalzell tells the crowd, reading from an overhead outlining the importance of a diversified portfolio.

In the course of their 90-minute session, they review the three main asset classes from which investors can choose and their related risk and returns. They also discuss market ups and downs and the benefits of staying invested long- term as opposed to trying to pick the "next big thing."

The crowd, consisting of women ranging in age from early 20s to late 60s, was keen and inquiring – asking about the prudence of overweighting one's portfolio in cash given declining interest rates and the value of rural investments.

Business owners Amy Carter, 32, and Rosa Carter-Holt, 29, said they were interested in increasing their financial literacy for personal and professional reasons.

Ms Carter, who runs her own PR and marketing firm, said she had hit a point in life where she wanted to move beyond property investment.

"From my perspective, it more about learning on my own right. My husband has some very strong ideas about it, I'd like to have a bit more information to be able to argue the point I suppose.

"It's an interesting market at the moment with everything in recession and it's a good time to talk to people who know what they are doing rather than guessing it yourself."

Friend Ms Carter-Holt, owner and manager of a real estate franchise, said in her line of business it paid to know what advisers were saying about the property sector.

"I come from a financial background and was always interested in this topic but being in business ownership and the real estate sector, I am very curious to hear what they have to say property markets and where people should be investing."

And as could be expected, Ms Dalzell and Ms Moreton spent a fair deal of time assuring would-be investors that despite current conditions, there was reason to remain hopeful – and invested.

"It has been a horrible year, there is no denying it but there is also good opportunity," says Ms Moreton.

"People are more inclined to retreat when the market is going down, when it's all doom and gloom and all the rest of it, then advance when it's positive. So they think when the market goes into negative territory, like it is now, that people always lose money on the markets, but that's not necessarily the case."

But is this kind news more credible coming from a woman, or is a female adviser more trustworthy?

"We see it more as a partnership," explains Ms Moreton.

"Not as we tell them what to do and they follow our advice blindly. We make sure they're fully informed and they can make a decision based on that. So when you have difficult times, like at the moment, the clients understand we made these decisions together, that nobody's at fault, but that we can work together to move through these difficult times."