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Amplified: the future of finance is female

Millennials are changing the investment market.

In this episode of Amplified, Aoifinn Devitt, Head of Investment of Hermes Fund Managers Ireland Limited, is joined by Steve Chiavarone, a portfolio manager and equity strategist at Federated Global Investment Management and Louise Dudley, Portfolio Manager, Global Equities at Hermes Investment Management, to discuss research carried out by Chiavarone in his paper ‘Respect – The Ascendancy of Millennials and How the Future of Finance is more female’. In this research, he explores how millennials differ from their baby boomer counterparts, how they are a generation of savers, why they want professional help with their retirement savings, and the evolving role of women in financial decisions.

Chiavarone explains: “the millennial generation is the most educated generation we have ever had and when you look underneath the hood you find that that educational attainment is coming mostly from women”. His research also showed that education and income is "absolutely linked." "Female incomes have risen dramatically. Since 1980 the average males median wage is up around 2% while the average female wage is up 35 – 40%. However, even at that rate, you have got a bit of time until we are looking wage parity," he added.

For Dudley, integrating ESG is key to catering for changing demographic trends in asset management.“Within Hermes we already have a big focus on sustainability and social issues and so to a certain extent we are already aware of some of these demographic changes," she says. While Chiavarone points out that ESG has really started with the consumer in the US."This is starting to bleed into the investment world in a fascinating way...the millennial generation want to make good decisions and reflect their values in their investment decisions as well as their day to day lifestyle decisions,” he says.

Addressing the rise of women as a consumer group, Dudley says: "The types of companies we are buying are well positioned in terms of these growth drivers...any companies that aren’t taking on board some of these changing trends are not going to be well positioned in the future.”

To find out more, tune in to Amplified.

Steve Chiavarone’s research is available here.

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