Morgan Stanley just introduced a new tool kit to effectively integrate gender diversity criteria within an investment portfolio. This is great news if you are interested in making a real impact with your investments. Morgan Stanley investors can use the toolkit as a road map for their individual and institutional investors to develop a custom-made approach to integrate gender diversity criteria into their investment portfolios.
How does it work?
Within the framework, there are three approaches that can be used individually or combined:
- Gender Diversity as a Screen. Investors can choose to minimize investments in companies with poor gender diversity records.
- Gender Diversity Leaders. Investors can use gender diversity criteria to identify companies with potentially better risk and return profiles.
- Gender Lens Investing. This approach allows investors to proactively influence gender diversity. Financial decisions are evaluated with the objective of creating greater gender balance and a better world for women and girls. The solutions or themes most commonly associated with gender lens investing are; workplace equity, access to capital for women and products and services benefiting women and girls (i.e., affordable childcare and maternal healthcare).
All three of above mentioned approaches provide a social benefit as well as a return on the investments. As the “business case for gender diversity becomes more apparent, our objective is to help investors position their portfolios to take advantage of these opportunities,” said Lisa Shalett, Head of Investment & Portfolio Strategies for Morgan Stanley.
Is investing in gender equality profitable?
It seems that investing in gender equality is actually a good idea: “According to Morgan Stanley analysis released in May, 2016, high gender diversity companies have delivered slightly better returns, with lower volatility, compared with their low diversity or sector peers, and they have moderately outperformed on average in the past five years.” This means that apart from the real impact that investors have when investing in companies with more gender diversity, it also pays off from a financial standpoint. Especially when one is looking to minimize the risk in their investment portfolio, investing with the new toolkit form Morgan Stanley is definitely a way to reduce risk and improve on impact.
This toolkit is a perfect example of how diversity is interesting from a social and financial point of view.
Are you interested in having a real impact while improving your profit? Please feel free to Contact us!!
Managing director of Moxi.Biz
Moxi.Biz believes that integrating diversity in doing business is a ‘must have’ rather than a ‘nice to have’. Our mission is to raise awareness of the benefits of diversity marketing and help companies reach a more diverse clientele successfully. We do this by sharing relevant news, giving motivational talks and organizing inspirational sessions.
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