Invest in Gender Equality for Strong Portfolios
The term gender lens investing might be new but the practice isn't. According to US SIF, the Forum for Sustainable and Responsible Investment, social invetors have been advocating for more gender diversity in companies' leadership. In fact, studies have shown that emterprises with higher percentage of women in senior management positions outperforms others.
However, gender lens investment strategies go beyond simple numbers. For example, investors can also consider whether a company has strong workplace equality or whether it increases women's access to capital. Furthermore, Erika Karp, Founder and CEO of Cornerstone Capital Group, challenges investors to think about the difference between investing in women and investing for women. She said, "Just because a company has more women on its board doesn't mean it's improving women's lives."
Regardless of asset class, investing in gender equality is about transparency and help ensure a strong portfolio performance.