‘We believe that businesses that promote gender equality have a competitive advantage’
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JunweiHafner-CaiPortfolio Manager
What provided the impetus for the founding of the Gender Equality strategy?
"As pioneers of sustainable investing, we have been dealing with the issue of gender parity and its importance for corporate success for a long time already. We assess companies with regard to social aspects like this one and are convinced that businesses that recognise and promote gender equality have a competitive advantage. These companies have access to a larger talent pool, can retain top performers more effectively and benefit from a better customer understanding as well as better insights into market opportunities.
Supported by our research, the simulation portfolio of gender leaders outperformed those of the “laggards” in the past 10 years by 1% annually and with somewhat less volatility. Since the launch of the “real” investment strategy, it has performed better than the benchmark, and has done so with a solid information ratio."
The strategy’s success story is well-known. According to what criteria do you select your securities?
"We have a systematic, bottom-up stock selection process that combines proprietary gender equality research and ESG analysis with fundamental company analysis. Our disciplined approach focuses on companies’ gender equality performance, quality of business and valuation. We don’t assess gender parity only based on how high the proportion of women is in companies’ top management levels."
Does your evaluation approach go into more depth?
"We take a more holistic approach: We look at gender representation throughout the different workforce levels as well as other diversity metrics such as ethnicity and nationality, employee retention, equal remuneration practices and employee well-being programs to support family and work-life balance. All these factors are important for a diverse and inclusive working environment, in which men and women have the same career prospects and opportunities to develop their potential."
Do you have a secret recipe for the strategy management?
"For the management of our strategy, active ownership – the active exercise of our rights as shareholders – is also paramount because it is an effective way to influence company behavior. We engage with portfolio companies on gender equality issues to improve their performance."
