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Investing to promote gender equality while also receiving a return on your investment
WOMEN’S HISTORY MONTH seems a good time to call attention to lingering issues of inequality—like a still-stubborn wage gap, and the unequal representation of women in management and government. Increasingly, people are looking for ways to put their money where their values are by investing in companies that support women’s equality. In fact, research from Veris Wealth Partners indicates that assets under management invested in support of gender equality—so called “gender lens investing”—have grown from $560 million to $910 million from June 2016 to October 2017 alone.1
So what is gender lens investing? “It’s not small, soft, and pink,” says Jackie VanderBrug, Investment Strategist in the Global Wealth and Investment Management Chief Investment Office (GWIM CIO) and co-author of the recent book "Gender Lens Investing." "It's the deliberate integration of gender-based data into financial analysis, with the expectation of finding additional opportunities and uncovering and mitigating risks."
Let’s break that down. From a practical perspective, it means investing in:
Gender lens investing, says VanderBrug, is “investing to promote gender equality while also seeking a return on your investment.” If you’re interested in exploring it further, VanderBrug recommends meeting with your advisor and asking how you might increase your portfolio’s exposure to the growing economic power of women.
For more data and insights on the role that gender lens investing can play in your portfolio, read “Why Gender Lens Investing Is Good for the World—and Your Portfolio.”
1 Gender Lens Investing: Investment Options in the Public Markets. Veris Wealth Partners, October 2017.
2 Past performance does not guarantee future results.
Impact investing and/or Environmental, Social and Governance (ESG) managers may take into consideration factors beyond traditional financial information to select securities, which could result in relative investment performance deviating from other strategies or broad market benchmarks, depending on whether such sectors or investments are in or out of favor in the market. Further, ESG strategies may rely on certain values based criteria to eliminate exposures found in similar strategies or broad market benchmarks, which could also result in relative investment performance deviating.