- Gender lens investing and women in leadership (WIL) experienced eventful third quarter.
- Gender lens equity funds showed modest positive returns and outperformed companies with higher WIL metrics.
- Assets under management for gender lens global equity funds increased to $2.03 billion, with the United States leading in allocations.
- Q3 saw important strides for women in financial services leadership, but women still make up a small percentage of board directors and CFOs in major financial firms.
- Women’s workforce participation faced major setbacks, with a decline in labor force participation rate and significant job losses.
- Public and private gender lens investing can contribute to promoting progress in narrowing the WIL and gender pay gaps.
The third quarter saw significant developments in gender lens investing and women in leadership (WIL), especially in the financial sector. Gender lens equity funds delivered modest positive returns, aligning with the overall market trends. These funds were established based on evidence indicating that companies with higher WIL metrics exhibit superior financial and stock price performance. Currently, there are 23 primary gender lens equity funds available to individual investors globally. The year-to-date returns for the sector were mixed due to the impact of the global pandemic and the associated economic downturn.
Assets under management (AUM) for gender lens global equity funds have increased to $2.03 billion, with the United States leading in AUM-weighted allocations. However, women’s workforce participation faced significant setbacks, particularly with the decline in the labor force participation rate and outsized job losses during the global pandemic.
The quarter also witnessed important strides for women in financial services leadership, with notable appointments of female executives to top positions at major financial institutions. Despite these advancements, women still represent a small percentage of board directors and CFOs in major financial firms. Public and private gender lens investing can play a crucial role in promoting progress in narrowing the WIL and gender pay gaps and making such progress more investable.
Overall, while there have been positive developments, there is still much work to be done in addressing the challenges faced by women in the workforce and advancing gender equality in the financial sector. For more analysis on this topic, visit the Parallelle Finance website.
