‘Exactly where I am supposed to be’: Stephanie Hickmott

This is one in a series of articles in our special report, “Women in Family Offices.”  To view all the articles, click here.

Stephanie Hickmott, principal and portfolio manager at Leith Wheeler Investment Counsel, is not afraid to speak up and speak out for women. Now close to 30 years into her career, including 17 years in investment management, Hickmott is frank about the need to increase women’s presence both in the advisory aspect of investment management and in the broader financial services industry.

Hickmott, who joined Leith Wheeler in 2016 after working at two multinational banks, received an MBA from York University’s Schulich School of Business and a bachelor’s degree in economics from McGill University. She is committed to community involvement and giving back, in part through the Toronto Committee for 100 Women in Finance, a global non-profit organization that guides women toward finance careers, and as a member of the investment committee for the Humber River Hospital Foundation.

We spoke to Hickmott recently about why women are unique in their strengths and contributions to the world of finance—and how they must continue to support one another if they are to achieve an equal footing with their male counterparts.

Tell us a bit about your education and why you decided to study economics.

At the age of 18, after months of negotiating with my parents to attend McGill instead of the University of Toronto, my thought process for selecting a major was simply ‘What am I good at?’ In truth, I started out in the faculty of science, but I switched over to the arts so I could take more social science electives. I selected economics as a major because I was reasonably good a math. Following graduation, I joined a mutual fund company, as the industry was on fire in the ‘90s and it fit with my degree. After about a year, while most of my peers were determined to advance via networking, I felt that I needed a master’s degree to open the right doors. That was partially driven by a desire to go back to school and, admittedly, by a lack of confidence. Ultimately, I chose an MBA over an MA Economics to broaden my career options.

What was it about finance and investment that interested you?

My first job, after having finished high school a semester early, was working as a bank teller at my local branch. The job introduced me to interacting with people about their money. Later, during my undergraduate studies, I became interested in how trade-offs, scarcity, incentives and other concepts in economics impact human behaviour and societies.

While completing my MBA, I gained an appreciation for the ‘micro’ perspective and the business practices that make some companies more successful than others. Finally, when my post-graduate career started at a major bank, I became intrigued with people’s appetite for leverage, the intricacies of commercial lending, and the art of financial modelling.

Did you have any mentors or champions in your corner?

In my early days, my champions were my peers in the financial management training program at the bank, which had a three-to-one male-to-female ratio. We were a tight group of grads that supported each other and compared notes as we rotated through different business units. This group influenced me to obtain a CFA [Chartered Financial Analyst] designation right away to remain competitive.

After 10 interesting and useful years at the bank, I realized that I did not want to be a lifer. I needed to change my picture, leave big-bank politics behind, and find a new environment where I could leverage my education, experience and designation. I was drawn to a private investment counselling firm run by a woman. While it certainly had its challenges, it also had an exciting ‘new frontier’ energy. At the time, I saw my boss as more of a tough teacher than a champion. She was known for having somewhat of an edge, and I came to admire how she could unleash it equally on anyone, regardless of gender or status. She helped me realize that women can be overly critical of other women in the workplace because they perceive risk in being critical of men, and it is the responsibility of female leaders to change this perception by concrete example.

What has been your experience as a woman in portfolio management? What have the challenges been?

Overall, my experience in portfolio management has been great. Over the past 17 years, I have had the pleasure of working with a wide range of clients, including high-net-worth families, foundations, not-for-profits and First Nations. It is a demanding profession that is both advice-oriented and sales-driven. 

The challenges for women largely stem from the demanding hours that conflict with family responsibilities, which women still disproportionately bear, exclusionary networking practices built around traditionally male activities, and unconscious gender bias that ultimately funnels more attractive opportunities to men than women. These challenges are why we see persistent underrepresentation of women in senior roles and a shortage of role models to encourage young women to build rewarding and satisfying portfolio management careers.

Still, even with these challenges, I am extremely grateful for the career I have had thus far, and the dynamic path that has brought me to where I am today. I have landed exactly where I am supposed to be, at an employee-owned investment firm where, as a shareholder, I have real skin in the game and a voice. And I do believe the industry is evolving for the better, albeit slowly. The Me Too movement shone a light on harassment and microaggressions, and DEI [diversity, equity and inclusion] programmes broadened the scope of gender parity actions.

Personally, I became acutely aware of the gender pay gap while I was working for a U.S.-based multinational financial institution. One day, I accidentally received the payroll file for our entire office. Someone from head office HR emailed it to me in error, if you can believe it. It took maneuvering on my part to raise the matter with executive management without implicating the sender. After a lengthy, delicate discussion, I received an adjustment and a promise that the other employees’ wage discrepancies would be addressed. I resigned not long thereafter.

How would you suggest that the financial services industry open the doors wider for women?

The growing demographic of wealthy women will be the force of change. We keep hearing about how women will control more of the world’s wealth and financial assets thanks to higher-earning careers, a significant stake in the generational wealth transfer, and greater longevity than men. Research tells us that women’s share of wealth assets is expected to double by 2028, and more than two thirds of women prefer working with female advisors. Yet only 15 to 20 per cent of financial advisors in Canada are women. The data leads me to believe that the odds of failure are high for firms that do not increase the representation of women and evolve their messaging to reflect a more female perspective—because they will fail to win and retain this growing segment of wealthy clients.

Big changes tend to come with pain. We saw this with the pandemic. It was a difficult time that took its toll on people, businesses, and the economy. However, it ushered in a new era of workplace flexibility that is critical for women who are primary caregivers. In Career and Family, the economist Claudia Goldin writes about how the pandemic magnified the issues with ‘greedy work’ (i.e., work that demands inflexible, long hours to earn higher pay) and the tug of war between care and work. Today, post-pandemic, firms are making genuine efforts to maintain work-from-home flexibility.

You have been vocal about how personal perspectives shape people’s financial experiences and decision-making. How do you bring that message to your work with female clients?

With all clients, I engage in a discovery process that may require multiple conversations, shared stories, and examples of investing experiences. I often bring my own investing experiences and challenges to the table. My approach really does not differ based on gender. I strive to fully understand each client’s specific situation, goals, risk appetite and communication preferences. Some clients value more comprehensive information, detailed explanations and collaborative decision-making than others. I stop myself from over-generalizing and making assumptions about client needs and wants, despite research suggesting behavioural differences between female and male investors.

Behavioural finance is a popular subject. It gained momentum when [psychologists Daniel] Kahneman and [Amos] Tversky proposed that most investors tend to make decisions based on subjective reference points rather than objectively choosing the best option. These reference points can be influenced by personal experiences and are subject to cognitive biases. 

For example, if you grew up watching your parents struggle at times with debt, you may develop an aversion towards debt. You may make investment choices geared towards protecting a sizable safety net, so you are never forced to take on debt. The emotional impact of seeing your parents stressed about debt creates an easily recalled reference point, and your memories make the risk of debt feel more immediate and threatening than it might objectively be. Given your need for a safety net, an investment advisor might jump to the conclusion that you are a low-risk investor, especially if you are a woman. The advisor might recommend that your overall portfolio have a low risk profile. However, your aversion to debt does not necessarily correlate with a fear of market risk. You may feel perfectly comfortable taking calculated risks within your portfolio because your psychological need for security can be satisfied with a ‘bucket’ approach to your investment strategy, where pools of money are invested with different objectives and risk profiles.

As we mark International Women’s Day during what is poised to be another precarious year, both politically and financially, what is your advice for women in financial services who are looking to find their voices and secure their career paths?

I have three tips for women in the investment industry. First, take the time to find and build your support network. I joined 100 Women in Finance in 2017 to meet women outside of my firm. I became a member of the 100WF Toronto Committee and worked on a variety of fundraisers and awareness initiatives. Over the years, I built rewarding relationships with peers and allies whom I now rely on for advice, support, and inspiration. 

Secondly, client-facing portfolio management is a demanding profession that will, at times, interfere with your work-life balance. Equality at home is just as important as equality at work to succeed. 

Finally, meritocracy is a myth because it ignores systemic barriers and structural inequalities. Speak up for equal access to business development and leadership opportunities. Ask for support in developing the same skills and experience that have helped your colleagues succeed.

For matriarchs and their daughters, granddaughters and future generations, what advice would you give, as a financial advisor, when it comes to those women being more involved in family financial planning or decision-making?

Women have a lot on their plates. Many struggle with balancing career and family responsibilities, along with the challenges of social pressures. My advice for matriarchs and their daughters is to not sideline their financial planning and investment decision-making or push it off to other family members. Most women will have to tackle financial planning and investing at some point in their lives, whether on their own or with their partners. The sooner they do it, the sooner they will gain the knowledge, experience and confidence to overcome the negative attitudes and biases that are preventing them from getting involved. They may even start to enjoy it, as having a financial plan and a tailored investment strategy brings a sense of control and confidence about the future—which in turn paves the way for positive outcomes and change. 

This year’s International Women’s Day theme is appropriately named ‘accelerate action’ because, according to the World Economic Forum, the pace of progress towards gender parity is decelerating. It’s no surprise, given widespread global movements towards socially conservative governments and public adoption of anti-democratic policies and attitudes. Now, more than ever, women who value equality must take control of their financial well-being so they can ‘#accelerataction’ and remain optimistic about building a better world.  

Photo of Stephanie Hickmott by Theresa Blake, blakeandblakephotography.com.

The Canadian Family Offices newsletter comes out on Sundays and Wednesdays. If you are interested in stories about Canadian enterprising families, family offices and the professionals who work with them, but like your content aggregated, you can sign up for our free newsletter here.

Please visit here to see information about our standards of journalistic excellence.