Press Release - Women plump for lower risk funds in their ISA, says, new research from Chartwell Direct

Press Release - Women plump for lower risk funds in their ISA, says, new research from Chartwell Direct
 
Chartwell Direct, one of the UK’s leading investment brokers, has today revealed new research for ISA season showing that women select ‘lower’ risk funds for their ISAs.

A review of a sample of Chartwell clients (6,000) over the last two years’ ISA transactions shows that female investors tend to choose ‘lower’ risk funds for their ISAs
    Women are 10% more likely to hold sterling corporate bonds
    Women are 10% more likely to hold cautious managed funds
    Overall, women are more likely (around 4-5%) to hold absolute return funds, strategic bonds and UK equity income
    Interestingly, female investors held more European equity holdings, by about 5%

James Davies, Head of Investment Research at Chartwell, said:
“Our ISA transactions for the past two years show that women have typically plumped for lower risk options – and in the volatile markets, this approach will probably have served them well!

“It’s interesting that women held the European equity funds for so long – I’d surmise from this that women are more likely to hold on to poor performing funds i.e. they operate as longer term investors.”
 
Males are more likely to invest in higher risk funds and make fund changes in their ISAs
    Men are more than 10% more likely to hold global emerging markets and specialist funds;
    Men are 10% more likely to hold global equity and Asia Pacific funds;
    Males have made nearly 20% more transactions into the Cash Reserve fund over the last year, showing that despite their overall tolerance for more investment risk, they are more likely to try and ‘time’ the market (females greater use of cautious managed funds also indicates this) by switching in and out of funds, using cash if necessary;

Davies continues:
“The more risky approach favoured by the men is interesting – men are much more likely to try and ‘time’ the market than their female equivalents.  It’ll be interesting to see if this trend continues in 2009 – many investors have had their fingers burnt trying to pick the market over the past few months!  But there are also clearly buying opportunities at these levels.  As always, diversification of risk is the solution – trying to second-guess the market is a very dangerous game at the best of times – more so in the current market turbulence.”   

“We’re recommending a portfolio approach to ISA investing this year – that’s why we’ve created 4 different ISA options.  Each is based on a portfolio of 5 different yet complementary funds, offering investors a sensible level of diversification.  

We are experiencing significant demand for the Chartwell High Income Portfolio with an annual charge at a highly competitive 1.1% which offers the investor a monthly income stream and an annual yield of 6.4% gross. Your investment ISA can therefore become a real boost to your cashflow if you’re an investor relying on savings interest as a monthly income.”

INVESTORS INTERESTED IN AN ISA FROM CHARTWELL SHOULD CALL 01225 823915 OR EMAIL direct@chartwell.co.uk.

INVESTOR CASE STUDIES ON REQUEST. E.G. HIGH INCOME PORTFOLIO CASE STUDY OF OLDER CLIENT NEEDING SOME INCOME FROM A SENSIBLE INVESTMENT ISA AS CASH ISA RATES HAVE HIT THE FLOOR.  -  email ryan@rostrumpr.com

Media enquiries please contact:
Nick Bolshaw
PR Consultant to Chartwell
Rostrum Communications
nick@rostrumpr.com
07931 456 214