Future of Finance is Female: Investment Funds Look for Women in Leadership
– While the growing number of women running for political office is getting lots of attention, there’s also a push in the financial sector to increase female leadership on Wall Street.
American women control more than half the personal wealth in the country, but comprise only 9 percent of executive leadership, according to Catalyst, a global nonprofit organization advocating for women in the workplace.
Gender inequality is prompting some investment firms to seek out funds that prioritize female leadership in the companies they include.
Betsy Moszeter offers a gender-lens portfolio at her firm, Green Alpha, where she is chief operating officer.
“It’s been proven, time and time again, that the more diverse your team is, the more innovations will come out of that group, the higher they execute on their goals, the better they are at problem solving, the better they are at identifying problems,” she states. “The list goes on and on.”
Moszeter refers to what is known as “gender lens” investing as a growing sector among firms around the country. The term describes the integration of gender into investment analysis, with the goal of making the world more equitable while making a profit.
Peter Krull is CEO of Earth Equity Advisors, a firm that specializes in socially conscious investing. He says in recent years that has largely meant considering companies’ environmental viewpoints, but increasingly, gender diversity is a consideration.
“This is not the old white man’s universe any more, and we especially see this from the end user,” he points out. “So, who are we selling to? We’re not just selling to other old white guys anymore, so we need to represent, in these companies, who we’re actually trying to market to.”
Moszeter adds while leveling the playing field on Wall Street is a worthwhile goal, that isn’t why most people should consider gender-conscious or green investments.
“I don’t believe investments should be done only because they feel good,” she states. “That’s more of the role of philanthropy and other things you do in life. Because when you’re investing, you’re creating your retirement nest egg, you’re saving for college – whatever your goals are.”
Moszeter points out that any financial adviser has access to gender-lens portfolios for investors who want to know more.