The Intelligent Investor Newsletter – May 10, 2017

A bi-weekly publication from Consultiva Internacional, Inc. (Registered Investment Adviser)

Whether you agree with her or not, it’s fair to say that Federal Reserve Chair Janet Yellen has based U.S. monetary policy decisions and efforts on economic metrics and fundamentals, keenly mitigating any perception of gender-based biases. However, as the keynote speaker at Brown University’s most recent conference on Women at Brown, Yellen shared her thoughts and experience on women in the economy and the gender differences that still impact our society. She began her story on women in the workplace at the end of the 19th century, at the time when only 54% of school-aged women in the U.S. went to school. By the 1930s the labor force participation rate was almost 50% for single women, but only 12% for those who were married. As they became more educated and workplaces began to offer jobs deemed suitable for them, the participation rose steadily reaching 74% of women between 25 and 54 years of age during the early 1990s. Nevertheless, Yellen stressed that progress had stalled since then. The participation rate has fallen (see graph below), and women working full-time earn 17% less per week than men. Some of this has to do with the types of jobs, but Yellen said that “even when we compare men and women in the same or similar occupations who appear nearly identical in background and experience, a gap of about 10 percent typically remains.” She concluded with suggestions on improving access to affordable quality childcare and developing working styles that enable women to better meet their duties at work and with their families.

I would add that companies should increase leadership opportunities for women as a way to improve their bottom-line. A 2013 Harvard University study concluded that the net profit margin was significantly stronger in companies with boards that had at least three women directors. A 2014 Credit Suisse study found that more women in management coincided with better corporate performance and higher stock market valuations. In recognition of this, investment companies have launched vehicles such as the Pax Ellevate Global Women’s Index Fund and SPDR® SSGA Gender Diversity Index ETF (“SHE”), alternatives for investors we track closely. SSGA went further placing a bold symbol, a statue of a Fearless Little Girl representing the importance of women in leadership in a location that no one can ignore, in front of the bull on Wall Street, on the International Women’s Day. After all, market performance is many times the best test of impactful ideas.

by Myrna Rivera, CIMA®
Founder & Chief Executive Officer

Graph 1

The Intelligent Investor Newsletter – May 10, 2017

 

FURTHER READING AT CONSULTIVA INTERNATIONAL INC.

DISCLAIMER:

Consultiva is a Registered Investment Adviser. The registration with the Securities and Exchange Commission does not imply a certain level of skill or training. Consultiva has compiled the information for this report from sources Consultiva believes to be reliable. Sources include: investment manager(s); mutual fund(s); exchange traded fund(s); third party data vendors and other outside sources. Consultiva assumes no responsibility for the accuracy, reliability, completeness or timeliness of the information provided, or methodologies employed, by any information providers external to Consultiva. Conclusions reflect the judgement of Consultiva Investment Strategy Committee at this time and is subject to change without prior notice. There also can be no guarantee that using this information will lead to any particular result. Past performance results are not necessarily indicative of future performance. Diversification does not guarantee a profit or protection against loss. This document is for informational purposes only and is not intended to be an offer, solicitation, recommendation with respect to the purchase or sale of any financial investment/ security or a recommendation of the services supplied by any money management organization neither an investment advice or legal opinion. Investment advice can be provided only after the delivery of Consultiva’s Brochure and Brochure Supplement (ADV Part 2A and 2B) once a properly executed investment advisory agreement has been entered into by a client and Consultiva. This is not a solicitation to become a client of Consultiva. There are risks involved with investing including the possible loss of principal. All investments are subject to risk. Investors should make investment decisions based on their specific investment objectives, risk tolerance and financial circumstances. Global and international investments may carry additional risks that are generally not associated with U.S. investments, such as currency fluctuations, political instability, economic conditions and varying accounting standards. Annual, cumulative, and annualized total returns are calculated assuming reinvestment of dividends and income plus capital appreciation.

A %d blogueros les gusta esto: