There were 7,693 mutual funds in
So how do some of these funds make a name for themselves in the
Enter women-managed mutual funds. Some of these offerings bet on domestic and international equities but with a twist: The target companies make it their business to promote gender equality in the workplace. And while they basically do the same things male-run funds do, research points to women portfolio managers as independent thinkers and long-term investors who can add value for advisors and their clients.
Finding Alpha in Gender Equality
In fact, Keefe in early January appointed
Kalus-Bystricky said the fund's top three holdings, which include
"It's a non-correlated source of alpha so across regions and sectors the goal is to invest in companies that promote women in management and leadership relative to their peers because we have so much research that leads to better financial results in terms of higher earnings and less volatility," she said.
Kalus-Bystricky said it's a shame that the industry is still underrepresented with women, because there are differences in management styles between men and women. "The gap between wealthy women and women managing that wealth seems like it is poised to change. I would hope to see a lot more women portfolio managers reacting to that need."
Nearly 1.2 million women are top wealth holders, comprising some 43% of Americans with gross assets of
The gender gap is a wide one in the world of investment management, according to the Women in Fund Management report. Women manage only 3% of the assets in the hedge fund industry, and only 10% of mutual fund managers are women, a figure that has barely budged over the past decade despite increasing numbers of women with degrees in finance and women certified as financial advisors.
Based on anecdotal evidence and a survey of academic research, the report concludes women fund managers take a more long-term, measured approach to risk, are more detail-oriented researchers, and are less likely to succumb to groupthink than the traditional male manager. "When you look at the narrowness of the demographic that got us into the current financial crisis and is charged with getting us out of it," said
They concluded that their finding cannot "be explained by rational statistical discrimination: female fund managers follow more persistent investment styles than male fund managers, and performances are virtually identical."
Bucking the Trend
"Everyday, we're interviewing more ladies. Our goal is to have 75% or more of company shares owned by women and to have 75% or more of the company employed by women," she said.
Her ongoing mission includes supporting the next generation of women in terms of increasing their investment intellect because she thinks that it generally takes women longer to get their advance degrees. To that end, Garnick said she is trying to get potential plan sponsor clients to sponsor summer internships for female scholars from
|Copyright:||(c) 2012 Financial Planning. All rights Reserved.|
|Source:||Source Media, Inc.|