Based on data collected from Investment Metrics Manager Research Database, women were found to have done a better job at protecting assets during this year’s downturn.
Namely, according to the research, active returns from portfolios led by women posted a median loss of 2.6 per cent compared to a loss of 5.9 per cent from male-led teams.
The analysis reviewed 90 Global Investment Performance Standards (GIPS) compliant portfolios from 73 asset management firms, including the likes of Morgan Stanley, Allianz, Invesco, and Schroders.
“At least in the near term, it would seem that women-led teams do a better job at protecting assets in down markets,” Scott Treacy, research consultant at Investment Metrics said.
Moreover, the research revealed that while the MSCI All-County World index was down 25.3 per cent through September 2022, women-led portfolio management teams did a significantly better job against their style indices.
“It was a similar story to what we saw in 2018 when the same index was down 8.9 per cent over that calendar year,” Mr Treacy said.
Still, women-led portfolio teams were found to only make up 14 per cent of the overall global large-cap equity peer group sample, with just 13 of the 90 products considered either led or co-led by a woman. Moreover, last year’s review of the strategy asset level revealed that women managed only $90 billion of the $698 billion in total strategy assets or 13 per cent.
According to the report, the women-led teams with the most assets include Walter Scott, Ninety One, Pzena, Epoch, and Loomis Sayles.
“Our analysis shows there is a strong case to build female-led teams — their recent performance in down markets has demonstrated their ability to navigate volatile capital markets,” Mr Treacy said.
“More women should be given more opportunities to lead portfolio management teams at asset management firms, and more institutional investors should be directing assets towards women-led portfolios,” he concluded.
