The presence of women financial advisors does not match current market potential represented by single women investors in the US, new data suggests.

The presence of women financial advisors does not match
current market potential represented by single women investors in the US,
new data suggests.

Information Asset Partners and Meridian-IQ said so much has been written about the lack of women in the advisory
profession that they decided to quantify it. There are around 9 million households headed by single women with
over $100,000 in investable assets - representing about a quarter of the 38 million US households headed by women - and their affinity for using financial advisors is escalating, the firms said. 

A fifth
of all advisors are women, but IAP forecasts a 60 per cent increase
on a national basis through 2015. Similarly, the Luxury Institute recently predicted that in only two decades women will achieve the same or more
success as men in terms of being in management positions, running businesses,
earning money and overall net worth. Interestingly, a study by Pershing earlier this year claimed that women are “critical” to the future of wealth management. However, the number
of female advisors is dwindling from its present level of 30 per cent, it said, concluding: “Women advisors can help unlock a variety of new market opportunities, ranging from divorcing women to younger investors.”

Looking at the new data across individual states, the industry
is “not mirroring its clients” in terms of where women financial advisors are
located within the broker-dealers, wirehouses and RIAs. It is worth mentioning that while the data represents women with
over $100,000 in investable assets, the findings are indicative of a
broader wealth management industry topic that has been in the limelight
for some time.

The financial advisory industry should be compelled to “not only take action, but specifically where it is most
needed,” said Cecile Munoz, president of US Executive Search.

“If one removed the 'women' from the title and presented these
findings to a wealth management executive resources would flow
immediately to address this opportunity. 'Women' are not a
segment or a trend. They are the AuM imperative. Firms must work toward a comprehensive, sustainable strategy
to win, retain, and grow mass affluent and high net worth clients: This
includes recruiting, outreach, marketing, and evolving their
cultures,” Munoz said.