Who rocks sustainable finance: women or men?

TLDR:

• Women exhibit greater efficiency in fund allocation, favoring a “buy and hold” strategy and making more thoughtful decisions.
• Research shows that European funds managed by female or mixed-gender teams outperform those led exclusively by men.
• Despite their proven effectiveness, women are still underrepresented in the asset management industry, with only a small percentage of portfolio managers and senior leaders being women.
• Gaps in representation and lack of role models contribute to the gender disparity in finance.
• To address inequality, asset management firms should actively implement measures to promote gender diversity, such as enabling more women to oversee high-net-worth clients and providing support and training programs to address biases and stereotypes.

Covid-19 has brought increased interest in ESG investing and women’s effectiveness in sustainable finance. European funds managed by women or mixed-gender teams have been found to outperform those led exclusively by men. However, women are still underrepresented in the asset management industry, making up only a small percentage of senior leaders and portfolio managers. This underrepresentation is due to a combination of historic biases, societal expectations, and lack of role models. To address these inequalities, asset management firms should actively promote gender diversity and provide support and training programs for women in the industry.