The power shift :
THE BIG THINK
The power shift :
How women are redefining wealth strategies
By Andriette Theron , PPS Investments Head of Research
The landscape of wealth and investment is undergoing a remarkable transformation , with women stepping into roles of increasing financial influence both locally in South Africa and around the world . This power shift is not just a trend ; it signifies a fundamental change in how wealth is managed , invested and distributed .
THE RISE OF FEMALE INVESTORS
Globally , women are set to inherit significant wealth , with projections by the Bank of America indicating that by 2030 , they could control a staggering $ 30 trillion in assets in the US alone . In South Africa , women are expected to play an equally pivotal role in the investment landscape as their financial influence grows . According to South African Census statistics , the proportion of households headed by women is rising , currently exceeding 42.2 %. This demographic shift highlights the increasing economic power women hold in our society .
UNIQUE PERSPECTIVES AND PRIORITIES
As women take on more financial responsibility , their unique perspectives and priorities are beginning to reshape investment strategies . Research shows that women often prioritise values such as sustainability , social impact and long-term security . This approach contrasts with traditional investment strategies that may focus solely on financial returns . As a result , the demand for sustainable and socially responsible investment options is on the rise .
Women seem to be increasingly seeking investments that not only yield financial returns but also contribute positively to society . This desire to invest with purpose is driving asset managers and financial institutions to rethink their offerings . In South Africa , while the range of niche funds targeting specific Sustainable Development Goals ( SDGs ) is still developing , there are growing opportunities in infrastructure and impact investing that align with women ’ s values .
THE ALPHA SIGNATURE : A NEW INVESTMENT PARADIGM
A key concept in understanding this shift is the “ alpha signature ”. Traditionally , “ alpha ” has referred to the excess return earned on an investment compared to a benchmark . However , as women engage more in investment decisions , their alpha signatures reflect broader priorities . This means that their approach to achieving returns may incorporate considerations beyond pure financial performance , such as social impact and environmental sustainability .
Women are often more open to exploring non-traditional asset classes that can provide both competitive returns and align with their values . This includes investments in private markets , venture capital , and funds that focus on environmental ,
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