The rise of ultra-wealthy women: A force for good
Read here what GSB Wealth Partner Yazmin Boden had to say about the rise of UHNW women over the last few years.
The number of ultra-wealthy women is steadily rising, and this is not only a win for gender equality but also a driving force for positive social impact. Female multi-millionaires are increasingly shaping the world through their wealth and influence, focusing on causes that matter to them and creating lasting change in their communities. In this article, we will discuss:
But who are these ultra-high-net-worth women, and how did they build their fortunes?
In 2023, there were 43,457 female ultra-high-net-worth individuals and 369 female billionaires. Although women represent only 13.3% of the global billionaire pool and 11% of the UHNW population (those with wealth of USD 30 million or more), the growth in their numbers since 2010 is remarkable. Back then, women made up just 9% of billionaires and 6.5% of UHNW individuals.
How female multi-millionaires manage their wealth
When it comes to managing wealth, both UHNW men and women exhibit similarities, particularly in holding a high proportion of liquid assets. However, women need to manage their wealth more actively due to their longer life expectancy and generally less experience in making significant financial decisions. This is especially true for female billionaires, who statistically fall off the Forbes billionaire list more quickly than their male counterparts.
Interestingly, the UK stands out for its culture of female entrepreneurs. It’s the only country where self-made female billionaires outnumber those with inherited wealth in the past decade. This trend underscores the importance of female entrepreneurship and its growing impact on the global economy.
Sources of wealth for UHNW women
A significant proportion of UHNW women’s wealth comes from inheritances, though there has been a notable increase in self-made female billionaires. One standout is Rafaela Aponte-Diamant, co-founder of one of the world’s largest shipping companies, who secured her place as the richest self-made woman on Forbes’ Billionaires List in 2023. She’s also the seventh richest woman globally and the only one among the ten wealthiest women to have built her fortune entirely independently. In fact, last year, 100 women on the Forbes list were self-made, having founded or co-founded companies, while another 200 inherited their wealth.
While self-made women represent 45.2% of the female UHNW group, compared to 75.7% for men, their median wealth is generally lower. On average, self-made UHNW women possess $35.7 million in assets, compared to $67.3 million for those who inherited their wealth. However, self-made billionaires like Aponte-Diamant continue to prove that entrepreneurship can be a powerful engine for wealth creation.
In contrast, many female UHNWIs combine inherited wealth with their own business achievements. Abigail Johnson, CEO of Fidelity Investments, for instance, inherited her father’s business in 2014 and has grown it significantly, boosting revenue to a record $28.2 billion in 2023. She now ranks as the tenth richest woman in the world, moving up from 11th place last year.
The 2024 Forbes list also welcomed 46 new women, with some earning their spot due to stock market gains, while others, like sisters M?rta Sch?rling Andreen and Sofia H?gberg Sch?rling of Sweden, inherited their wealth. After their father’s passing in December 2023, each sister now holds a fortune of $5.6 billion, illustrating the continued role of inheritance in shaping the ultra-wealthy female demographic.
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Trusts and UHNW women
Trusts have become a crucial tool for wealth preservation among UHNW women. They enable wealthy families to protect assets from financial crises and ensure cross-generational wealth retention. Today, trusts help widows or divorcees who may lack asset management skills by allowing financial professionals appointed as trustees to manage these assets in the best interests of the beneficiaries.
Wealthy women as a force for good
For many UHNW women, wealth goes beyond financial assets. A survey by The WealthiHer Network in 2022 revealed that wealth signifies health for 49% of Asian high-net-worth women, freedom for 42%, and happiness for 24%. Additionally, 51% of respondents equated success with a thriving career, 46% with making a difference in the community, and 29% with helping their children achieve their ambitions.
Narrowing the Gender Wealth Gap
The rise of ultra-wealthy women is an opportunity to narrow the gender wealth gap. In Germany, studies show that although individual wealth is similar for most of the population, a significant gender wealth gap remains among the wealthiest 1%. Closing this gap among UHNWIs is a crucial step toward reducing the overall gender wealth gap in society.
Conclusion
The growing number of ultra-wealthy women is transforming the landscape of wealth and philanthropy. Their increasing involvement in asset management and social causes is not only bridging the gender wealth gap but also driving positive change in communities worldwide. If you’re an ultra-high-net-worth individual seeking guidance on managing your wealth, consider contacting a qualified financial adviser at GSB Wealth. Our team is dedicated to helping you navigate your financial journey confidently and professionally. Contact us today to learn more about how we can assist you in achieving your financial goals.
Disclaimer
The views and opinions expressed should not be construed as investment or financial advice. The information contained is for educational purposes only.
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