Colonial First State Asset Management economic and market research senior analyst Belinda Allen said CFS found Generation X women still lag behind Generation X men when investing in equities, despite a fall in activity by Gen X men.
“We have seen some early signs of a turnaround in investment in equities for Gen X women, who have been more responsive than males in taking advantage of changes in market conditions and events during 2013 and into 2014 across all age groups,” Ms Allen said.
“These women may finally be heeding the message to save more, save earlier and invest in higher growth assets,” she said.
Ms Allen pointed out that Gen X investors reduced their preferences for equities by nine percent over the first half of 2014, with their finding more favour in investment property.
“If Gen X men continue to reduce their exposure to equities, as for women, they may be compromising their retirement savings,” Ms Allen said.
“One reason why preference for equities has fallen for men could be a rise in demand for other investment opportunities, for example, direct equities or investment property.”
CFS said that overall, Gen X males still have a higher average exposure to equities compared to women, and it is important for women to invest in equities to “equalise these levels”.
“Gen X women [are] behaving more like retirees in terms of risk appetite. This could be a problem long-term, as most Gen X women are in their prime accumulation phase, and should be considering investing in more high-growth assets,” Ms Allen said.
