Founder & CEO of RI Strategy Consulting (and formerly with Parnassus Investments)
I recently attended the PRI in Person conference on the Principles for Responsible Investment held in London last September and came away quite impressed. While I came away with plenty of new information to digest, and more than a bit overwhelmed, the reoccurring theme that stood out was not the title of any specific session, it was the number of women in attendance at the conference — 40 percent of the delegates and 35 percent of the speakers were females. Compared to financial service industry events such as Schwab IMPACT, the Morningstar Investment Conference, IMCA, FPA and NAPFA conferences, events focused on responsible investing continue to have a much higher female participation rate. Another example of this is the upcoming SRI Conference on Sustainable, Responsible, Impact Investing, which has historically had a ratio of females to males that is close to 50-50. This year I’ve been informed that they have more women on the agenda than ever before. I thought to share this observation because it highlights two trends that are beneficial to the investment industry.
The first trend is that responsible investing is attracting females in greater numbers than have historically been represented by the financial services industry. The same job titles and responsibilities that come with traditional finance jobs are available in the field of responsible investing (securities analysts, fund managers, commercial and private bankers, investment advisors, financial planners, consultants, marketers), so why is it that responsible investing has a greater number of women represented within its ranks?
One reason is that the mentality that created responsible investment companies, which file shareholder resolutions, educate the public, and work with nonprofits, is more supportive of promoting women in the workforce. A key to long-term career success is staying power, so an industry that is especially supportive of working mothers will facilitate their success in that industry. The Financial Women of San Francisco has long recognized the importance for women in finance to network with other accomplished women and to be recognized for their achievements.
In case you missed it, Joe Keefe, President and CEO of Pax World, was honored in mid-September by the Financial Times with his inclusion on their published list of “top feminist men.” These men are recognized for helping women succeed in business and beyond. A peer of his, Jerome Dodson, President of Parnassus Investments and Portfolio Manager of the Parnassus Endeavor Fund, has long touted the benefits of investing in companies that are good places to work for women, referencing Working Mother magazine’s list of 100 Best Companies as a source of ideas for new investments. Notable features of the 100 companies on Working Mother’s 2015 list is that they provide new moms with an average of eight weeks of fully paid maternity leave, three quarters of their employees use flextime, and almost half of all new hires last year were women.
Another reason is that self-selection may lower the number of men who are traditionally drawn to finance to be drawn to a career in responsible investing. A field that is dedicated to building a sustainable and equitable global economy appeals to those interested in making the world a better place, and while that’s by no means the sole interest of women, the values orientation can seem too “soft” for someone who fits the Wall Street stereotype. To expand the conversation of investing beyond the sole focus of providing the best returns runs counter to tradition. Those dedicated to responsible investing are comfortable with being untraditional.
I can distinctly remember how I felt when I first learned about SRI while working as an intern for the Santa Cruz Community Credit Union. An economics degree at UC Santa Cruz required the completion of an internship, and while many of my peers served as interns at banks and wirehouses, I seized the opportunity to familiarize myself with the local credit union. While doing some research on how to align personal values with personal finances I came across the Calvert Funds. I was shocked to have never before heard of socially responsible investing (after all, this was 1999 and Calvert has been established in 1976) and I was delighted that such a concept existed. It made perfect sense to me that the power of finance should be used as a catalyst for good, and I immediately made up my mind that this was the type of finance I wanted to practice. Fifteen years later I’m pleased to share that my instinct was correct.
This brings me to the second trend that was highlighted at the 2015 PRI in Person conference — the expansion of responsible investing. I won’t reiterate the numbers that are well known by now, but it’s worth repeating that more than one of every six dollars under professional management in the United States is applying some form of sustainable, responsible and/or impact investing strategy. What is equally significant is that the growth in responsible investment assets is not just attributed to a select number of managers growing their assets, but is a result of new products and new firms entering the field. What this means for women (and men) is that there are now more jobs than ever that offer the opportunity to utilize skills once reserved for traditional finance, and at the same time incorporate social and environmental values previously reserved for nonprofit or volunteer work.
For all genders, there are more opportunities to work in the field of responsible investing. However, speaking as a woman, I appreciate the unique environment that has been created by the evolving interests of investors and asset managers to utilize finance as a means of social good.
Article by Nancy Reyes, Founder & CEO of RI Strategy Consulting
Nancy currently serves on the Board of Directors for USSIF. USSIF is the US membership association for professionals, firms, institutions and organizations engaged in sustainable, responsible, and impact investing.
Prior to going off on her own, Nancy was the Director of Advisor Relations at Parnassus Investments from 2005 to 2015. She managed fund distribution via the wirehouse, RIA, bank trust and independent broker dealer channels.
She has over fifteen years of experience in the field of responsible investing, holds the Series 6, 26, 63 and 65 securities licenses, and received a bachelor’s degree in economics from the University of California, Santa Cruz.
Nancy is an active member of the Financial Women’s Association of San Francisco, the oldest financial women’s organization in the country, helps run the Bay Area Social Investment Forum, and has served on the board of Spark SF, a nonprofit organization that addresses social, political and economic issues by working with grassroots women\’s groups worldwide.
