Happy International Women’s Day. Market watchers and fundamental investors take note. The economic significance of women globally should not be underestimated. There are numerous articles today on Bloomberg and other outlets enumerating the figures which we do not need repeat here. This post is to assert our view that to allocate capital across markets without attention to the realities of gender equality and diversity is to miss a critical part of the risk and return thesis for any investment.
Today is an opportunity to get more involved in participating in and shaping that reality. In addition to being a day of recognition this is also a day of challenge to the status quo through the “International Day Without a Woman”. But, how do we create lasting change for women and fully open markets to the possibilities beyond tomorrow morning’s headlines?
For anyone in a position of privilege and power, or anyone in a position to speak to that position, be advocates for gender equality and inclusiveness through engagement. The esteemed organization Catalyst puts out an excellent resource guide that can help foster this type of engagement that we recommend reading and sharing. Aside from being the right thing to do, paying attention to these important issues is virtuous from an investor’s perspective. Board and leadership diversity, equitable pay and career advancement are hallmarks of great companies that understand how to fully and effectively utilize human capital to unlock business value. Women are also increasingly not just major contributors to but the key decisionmakers around family wealth. Starting or advancing the conversation on gender equality and diversity is good for capital formation, wealth creation and legacy building. Give people the tools and language to start effecting durable change: