This statement might just ruffle a few feathers but it looks like women do make better investors than men, especially during turbulent times. Despite being significantly underrepresented in the investment management industry, studies show that female-led investment teams consistently outperform their male counterparts.
Research by KPMG, Goldman Sachs and others show that in times of market upheaval and downturn, investments managed by women fare better than assets handled by their male colleagues.
The latest data collected from Investment Metrics reinforces this trend. During the volatile period of January to September this year, active returns from portfolios led or co-led by women posted a median loss of 2.6 percent compared to a loss of 5.9 per cent from male-led teams.
This analysis examined returns from 80 investment portfolios across 73 asset managers, including Future IM/Pact industry partner Schroders, whose Australian & NZ CEO Sam Hallinan is a vocal supporter of women in investment management.
Investment management remains one of the most male dominated professions in Australia, with women accounting for less than 10% of key decision-makers. With all the evidence suggesting women make great decision-makers, it’s frustrating to see so few in the role. Especially when you consider the $4.2 trillion is key to securing our financial futures and economic prosperity.
The way women make decisions is at the core of their success. Generally, women take more time to explore opportunities and gather information. They seek out different opinions and viewpoints and are open to advice and collaboration. They are more cautious, focusing on risk management and holding assets longer. These attributes have assured their success in navigating and outpacing down markets for the past 20-plus years.
Bringing more women into front-office investing is not just about returns though, it’s also about building a culture where everyone can do their best work. And when that happens – teams thrive.
FSC webinar: Accelerating the growth of women in investment management
To better understand the dynamics at play and explore ways to encourage a greater gender balance in asset management, I’ll be joining Camilla Love of F3 – Future Females in Finance and Jaya Ong, Investment Analyst at Cambooya for an upcoming FSC panel discussion moderated by Schroder’s Sam Hallinan.
This free 1 hour webinar on 22 November is a must-watch for anyone interested in increasing gender diversity within their organisation as well as females pursuing a career in funds management. Find out more and register to attend.
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