The Power of Gender Lens Investing for Sustainable Growth

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Credit: pexels.com, Curly-Haired Woman Having a Financial Problem

Gender lens investing is a powerful tool for driving sustainable growth. By considering the needs and perspectives of women and girls, investors can identify opportunities that benefit both people and the planet.

Research has shown that companies with more women on their boards and in leadership positions tend to outperform those with fewer women. In fact, a study found that companies with three or more women on their boards had a 26% higher return on equity than those with no women on their boards.

Investing with a gender lens can also have a positive impact on the environment. For example, companies that prioritize women's empowerment and sustainability tend to have lower carbon emissions and waste management costs.

By incorporating a gender lens into their investment decisions, investors can create a more equitable and sustainable future.

Benefits and Performance

Investors who use a gender lens to guide their investments have seen impressive results.

Business Insider reported in 2015 that most women-focused funds and investment strategies have been standout performers over the years.

Credit: youtube.com, Why Gender Lens Investing May Lead to Better Returns with Morgan Stanley at CNBC Women & Wealth

Firms with a higher-than-average proportion of women in executive roles tend to perform well, possibly because of an increased diversity of viewpoints or because not discriminating against women allows companies to hire the best available talent.

A Review commissioned by the UK Treasury found that supporting female entrepreneurs could generate as much as $250bn for the UK economy.

Women's World Banking Capital Partners investee shattered records in India's financial stockmarket during its IPO.

The Valeurs Feminines fund in France, created by Conseil Plus Gestion in 2005, is an early example of gender lens investing in mainstream finance.

It is a proven theory that investing in women-owned and women-led businesses can lead to strong financial performance.

Investors who follow a gender lens investment strategy may not make a killing in the market, but they can still achieve above-average returns.

Investment Strategies

Investors can use a gender lens to deploy capital that advances a social good—gender equality—and earning a financial return simultaneously.

Credit: youtube.com, Gender Lens Investing: Strategies on How to Apply a Gender Focus to Investment

A gender lens impact investing fund, like Capital Partners, can deliver returns for gender equality for low-income women and gender diversity for the institutions that serve them.

You can also listen to a podcast featuring Women’s World Banking Asset Management’s Chief Investment Officer CJ Juhasz, who discusses our approach to impact investing: a strategy called gender lens investing.

Investors can take advantage of gender lens investing by using a strategy that advances a social good—gender equality—and earning a financial return simultaneously.

By investing in a gender lens impact investing fund, you can make a positive impact on the lives of low-income women and contribute to a more equitable society.

Philanthropreneurship and Impact Investing

Philanthropreneurship is a key driver of gender lens investing, as seen in Women's World Banking's Capital Partners Fund, which is demonstrating the business case for investing in women-focused companies.

Investors can use a gender lens to deploy capital that advances a social good—gender equality—and earning a financial return simultaneously, as stated in the article "Invest for Equality: Gender Lens Impact Investing".

Credit: youtube.com, Impact Investing Video Series: Gender Lens Investing

The Capital Partners Fund has delivered returns for gender equality for low-income women and gender diversity for the institutions that serve them, making it a successful example of impact investing.

Women's World Banking's leadership and gender diversity work is cited in an article about how to invest in women, highlighting the importance of diversity in investing.

Investors can drive performance in their investments and advance gender equality by using a strategy called gender lens investing, as discussed in a podcast featuring Women's World Banking Asset Management's Chief Investment Officer CJ Juhasz.

Investors can also learn from Women's World Banking's approach to impact investing, which is featured in a podcast discussing how to drive performance and advance gender equality.

In honor of International Women's Day, investors can take action by investing with a gender lens, as seen in the article "5 Easy Ways To Impact Invest In Women — And The World".

Industry and Market Insights

Credit: youtube.com, Webinar: Gender Lens Investing: The Business Case, Opportunities, and Action

The gender lens investing industry is growing rapidly, with global assets under management (AUM) projected to reach $1.2 trillion by 2025. This growth is driven by increasing awareness of the benefits of gender lens investing, which include improved financial returns and better social outcomes.

Women-owned businesses are a key focus area for gender lens investing, with research showing that they are more likely to reinvest 90% of their profits back into their communities.

The World Economic Forum estimates that achieving parity in the workforce could add up to $28 trillion to global GDP by 2025.

History

The practice of using investment to advance gender equality dates back to the 1970s with initiatives like Women's World Banking and Grameen Bank. These organizations granted small loans to mostly women business owners in the Global South.

Women's World Banking and Grameen Bank were pioneers in facilitating economic empowerment for women. This laid the groundwork for future initiatives.

Woman holding cash and smartphone displaying calculator, highlighting personal finance management.
Credit: pexels.com, Woman holding cash and smartphone displaying calculator, highlighting personal finance management.

The term "gender lens investing" emerged as a defined field in the 2000s and 2010s. This marked a significant shift in the way investments were made with a focus on gender equality.

Several key players, including Joy Anderson, Suzanne Biegel, and Jackie VanderBrug, contributed to the growth of gender lens investing. Their efforts helped to expand the field beyond its initial North American base.

The Gender Finance Collaborative was formed in 2018 by several development finance institutions hosted by CDC Group. This collaborative aimed to leverage combined capital, capacity, and knowledge to advance gender lens investing.

The Gender Finance Collaborative merged with the 2X Challenge in 2021 to become the 2X Collaborative. This marked a significant milestone in the evolution of gender lens investing.

The Valeurs Feminines fund, created by Conseil Plus Gestion in 2005, is an early example of gender lens investing in mainstream finance. This fund invested in women-owned and women-led European businesses.

Sewa Grih Rin

Credit: youtube.com, Sitara: A SEWA Grih Rin Limited Initiative - Somesh Tewari

SEWA Grih Rin is a nonprofit that has made a significant impact in improving the lives of India's low-income women.

70% of women in India are low-income, and organizations like SEWA Grih Rin are working to change that.

By investing in companies that provide access to agricultural services, clean energy products, and quality education, women can increase their income and take care of their families.

Access to education can lower rates of child marriage, improve job prospects, and increase earning potential by 12% per each school year attended.

Improved access to energy can improve education outcomes, lower rates of illness due to smoke inhalation by two times, and free up women's time by two times due to the role of women managing household energy use.

Women could increase yields on their family farms by 20% to 30% and reduce food insecurity 12% to 17% if they had equal access to agricultural resources as men.

By investing in women, companies can demonstrate the business case for gender equality and social well-being, while also pursuing financial returns.

World Banking Closes Second Fund for Financial Inclusion at $103M

A Woman Explaining the Investment
Credit: pexels.com, A Woman Explaining the Investment

Women's World Banking Asset Management closed its second fund, WWB Capital Partners II, L.P., at $103M. This is a significant milestone for the company.

The fund, WWB Capital Partners II, L.P., was initially launched with a first closing of $75 million in March 2020. This shows a notable increase in investment.

New York, NY, was the location where the announcement was made, on March 30, 2022. This highlights the global reach of the company's operations.

Women's World Banking Asset Management aims to promote financial inclusion through its funds and investments. This aligns with the company's mission and goals.

The final closing of WWB Capital Partners II, L.P. was held in March 2022, marking the culmination of the fundraising efforts.

World Banking Sells Stake in Enda Tamweel

Women's World Banking Capital Partners has successfully completed the sale of its stake in Enda Tamweel to Maghrebia Vie.

Enda Tamweel has been part of the Women's World Banking global network of inclusive financial service providers for decades.

Maghrebia Vie is part of UFI Group, one of the leading Tunisian groups.

This sale marks a significant milestone for Women's World Banking Capital Partners.

Frequently Asked Questions

What is the gender lens investing strategy?

Gender lens investing is a strategy that combines financial returns with promoting gender equality by investing in women in various roles, such as business owners, leaders, and customers. This approach aims to create a more inclusive and equitable economy by empowering women and driving positive social change.

What are examples of gender lenses?

Examples of gender lenses include visual representations that convey different levels of professionalism, power, and prestige, such as formal vs. informal settings or solo vs. collaborative poses. These subtle differences can influence how leaders are perceived by their audience.

What is gender impact investing?

Gender impact investing is a strategy that considers gender-based factors to advance equality and inform investment decisions. It aims to create positive social and economic outcomes for women and girls

What is gender lens finance?

Gender lens finance is the field of finance that considers the impact of gender on investment decisions, aiming to create better social and financial outcomes. It's a forward-thinking approach that views finance through a gender-smart lens, driving positive change.

Helen Stokes

Assigning Editor

Helen Stokes is a seasoned Assigning Editor with a passion for storytelling and a keen eye for detail. With a background in journalism, she has honed her skills in researching and assigning articles on a wide range of topics. Her expertise lies in the realm of numismatics, with a particular focus on commemorative coins and Canadian currency.

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