Investments  

'Women must take better control of their financial planning'

'Women must take better control of their financial planning'
Maxime Carmignac, managing director, Carmignac UK

The asset management industry is poor at addressing women, who in turn need to take more control over their finances, the managing director of Carmignac's UK branch has said.

Maxime Carmignac told FTAdviser she began to realise there was a gender inequality in investing through personal experiences at the start of her career.

“I felt among my friends, even in my family, there was an inequality in financial awareness between men and women.

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“As I grew older, [I realised] the huge value that women are missing, because they are not investing, and [therefore] not compounding their wealth,” she said.

Carmignac conducted a straw poll and asked her friends why they are not compounding.

“They said ‘it is because I am not wealthy enough’.

“It is the opposite - because you are not wealthy enough you should let the money work for you - and this is a huge misperception,” she said.

Carmignac said it is important for women to take better control of their long-term financial planning, because it gets to the very heart of their independence. 

“Indeed, financial independence for female savers equates to greater independence for women as a whole – and the key to this financial independence is understanding how to invest,” she said.

Unlocking capital

The outlook for womens' investing is improving, with research from Janus Henderson showing that women start investing three years younger than their male counterparts.

However, the investment industry is set to lose out on £2.36tn of global investment unless it becomes more inclusive.

According to a report from BNY Mellon, if women were to invest at the same rate as men, this could have a significant and lasting effect on the investment industry worldwide.

To this end, Carmignac created a fund aimed at women.

The Carmignac Portfolio Grandchildren is run by Mark Denham and Obe Ejikeme and has AUM of €66mn (£57mn).

Due to naming restrictions, the UK fund in this strategy is called the Carmignac Global Equity Compounders and has £51mn under management.

The UK fund has returned 25 per cent in the two year to June, compared with its benchmark, the MSCI world index.

Carmignac Global Equity Compounders five year performance

Source: Fe Fundinfo

The USP of the fund is to combine active management and compounding, as a one-stop shop for busy women who cannot trade.

"I have four children and a full-time job, I do not want to go around and see what stocks XYZ are doing.

"I want to invest and forget about it," she said.

Carmignac emphasised the important of everyone fighting for women’s development.

“I think this fight has to be won by both men and women, this is very important.

“Having realistic role models both within companies and externally is important [too].

“I think it is something that in the next 10 years will change.”

sally.hickey@ft.com