Be it stocks or MFs, women managers are giving men a run for their money
- In the last six months, S&P 500 companies led by a woman CEO have outperformed those led by their male counterparts by an average of 1.2%
In the financial industry, women continue to be under-represented. Even so, data suggests women have put up a good show.
The latest analysis on gender diversity in the Indian mutual fund industry by Morning Star showed that of the 376 fund managers, 30 are women, who are managing funds either as primary / secondary managers or have oversight as heads of equity/debt. Currently, the total count of women fund managers has increased from 28 last year to 30. “With a meagre 8% representation, women still remain drastically under-represented among the ranks of mutual fund managers,” said the Morningstar Inc. report on 4 March.
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Still, this has not stopped women from putting their best foot forward.
“Out of the total open-ended assets managed by women fund managers, 80% of the asset under management (AUM) outperformed the peer group average on a one-year basis, 80% of the AUM outperformed on a three-year basis and 74% of the AUM outperformed on a five-year basis - a feat truly worth commending,” said the Morningstar report dated 4 March.
Not just in India, even in the US, women chief executive officers are putting up an impressive show.
An analysis by Winvesta – fintech start-up offering Indians a platform to invest in international markets, compared the performance of S&P500 companies led by a women CEO to their male counterpart. The research showed that in the last six months, S&P 500 companies led by a woman CEO have outperformed those led by their male counterparts by an average of 1.2%.
For the 25 companies that were public on the date that a female CEO took control, the average outperformance to S&P500 has been an annualized 5.14%. Further, if one excludes women CEO's who took over in 2020 and 2021, the average outperformance to S&P 500 has been an annualized 3%, showed the Winvesta research.
In simple terms, if a person invested in an S&P500 company when a woman took over as the CEO, he would have beaten the S&P500 by 3% annually.
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