In the week including International Women’s Day, UBS published a thematic report on women and legacy, focusing on how women investors define legacy, their concerns, how they can best allocate their resources, and how important it is to put a financial plan in place for the smooth transfer of wealth.

A new report released by UBS global wealth management’s chief investment office highlights that more women favor investing in illiquid assets, such as real estate, compared with men.

Speaking to this news publication on the findings, Marianna Mamou, head of advice beyond investing, said: “Women prefer to invest in more tangible assets which they are familiar with like a home. They invest in a risk-averse fashion and are also more interested in investing in artwork than men.”

According to the UBS Q2 2021 Investor Watch survey, 61 per cent of women surveyed were interested in receiving advice about investing in illiquid assets compared with 50 per cent of men.

The legacy strategy focuses on maximizing and preserving wealth for future generations. It helps investors understand how much they can devote to goals that extend beyond their own lifetime and how best to achieve these goals. By separating legacy strategy resources from the rest of their portfolio, investors can invest them to maximize growth for future generations and for doing good. 

According to UBS, women are inclined to perceive and value wealth mainly as a source of security, and tend to focus on being financially secure and able to afford a certain lifestyle for themselves, but also for their loved ones over the long term. 

Based on the firm’s research on endowment-style portfolios, its standard guidance for the legacy strategy is to allocate up to 40 per cent to private markets, with research suggesting that real estate is one of women’s preferred asset classes. They are more comfortable using illiquidity in favor of investment returns. 

“But women aren’t so well-prepared as men to leave an inheritance and don’t have plans in place. Fifty-five per cent of women do not have plans in place compared to 41 per cent of men. Whilst 37 per cent do not understand the rules around inheritance tax compared to 25 per cent of men,” she said.

The UBS Investor Watch survey for 2022 also showed that 72 per cent of women found the pandemic to be an opportunity to have more meaningful end-of-life conversations with their heirs, compared with 66 per cent of men.

Data from the 2022 UBS Investor Watch survey also revealed that 56 per cent of women vs. 47 per cent of men do not know how much wealth they can pass on to the next generation, underlining the importance of financial advice and planning. “Women value advice more than men and are more willing to have a financial advisor,” Mamou added.