New Study Reveals Who is Investing in Women
Bloomberg recently unveiled a study that investigates what the big financial players are doing to promote gender equality.
The Bloomberg Financial Services Gender Equality Index (GEI), includes the top 26 public companies in the financial industry in terms of providing opportunities for women. “But this is just the inaugural group,” says Angela Sun, head of strategy and corporate development at Bloomberg LP. “We expect many more [companies] to come on board this year.”
Numerous studies have proven that diversity is good for the bottom line — including one 2015 report that found women CEOs in the Fortune 1000 perform three times better than the S&P 500 enterprises predominantly run by men.
The GEI lists 53 data points, ranging from number of women on staff and on the board, length of parental leave, provided child care and adoption services. It also provides investors with an easy way to compare the performance of these companies with that of the market as a whole.
The index currently includes banking heavyweights such as J.P. Morgan Chase, Bank of America, and Citigroup, as well as major insurance and credit card companies like Metlife and Visa.
This isn’t the industry’s first attempt to identify and support women in powerful positions. Earlier this year, an Exchange-Traded Fund was launched by State Street Global Advisors and which specializes in investing in companies with more women in senior management.
And a former big bank executive, Sallie Krawcheck, launched a fund management company in 2014 to offer an index fund focused on companies where women make up a significant portion of officers and directors.
While the above two examples are more vehicles for investors to get behind gender diversity, Bloomberg’s index is an attempt to measure, and provide valuable data for prospective investors to make their own determinations on where to put their money, and hopefully inspire corporate change with regards the gender gap.
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