International Women's Day is Friday 8 March 2024 and female fund managers are still by far in the minority - 184 compared to 1,512 male fund managers, according to most recent data.
Yet a fund management team will benefit from having a range of individuals with a range of different perspectives.
Emma Wall, head of investment analysis and research, Hargreaves Lansdown, said: “Fund management is an industry that is sadly far from equal. Until recently, Morningstar’s annual gender split report revealed that there were more men called Dave running money in the UK than women. But in 2022, female fund managers surpassed this number, totalling 184 to 59 Daves – but a paltry figure compared to the 1,512 male fund managers.
"Why does it matter? Are women better investors than men? This isn’t about who is the better investor. Rather, that different types of investors – a mix of people making investment decisions, with different views, challenges and thought processes – are more likely to produce more resilient investment ideas. Ethnicity, background, education, religion, and gender - diversity of thought can come from many different places. Much like a well-diversified portfolio requires investments in different geographies, asset classes and types of company to give it the best chance to thrive.”
Here are some tips from female investors that are among the best in the business:
Audrey Ryan, manager of Aegon Ethical Equity
“Prepare, plan and have patience! Be clear on your investment objectives and tolerance to risk. Diversification is important – don’t have all your eggs in the one basket!”
Oliva Micklem, co-manager of Artemis US Smaller Companies: “Know your strategy and objective and be consistent. You can’t borrow someone else’s conviction.”
Remi Olu-Pitan, co-manager of Schroder Managed Balanced:“Take control of your financial future by investing with consistency and breadth, blending stable assets with daring high-potential securities, akin to mixing timeless wardrobe essentials with bold statement pieces in fashion.”
Lauren Romeo, manager of Royce US Smaller Companies: “US small caps remain a compelling, though underappreciated, asset class. 'Blue chip' companies are not the sole domain of large caps. Within the small-cap universe, we focus on identifying and investing in high-quality businesses in industries with attractive prospects.
"These companies typically possess durable competitive advantages that enable them to generate – and sustain – high returns on invested capital and have opportunities to compound value over the long run by reinvesting their free cash back into the business at attractive rates of return.”
Charlotte Yonge, co-manager of Troy Trojan: “For any investment you make, do the homework, and purchase only if you think you are a) being offered a margin of safety, and b) you could hold the investment for at least five years. Then brace yourself for the inevitable turbulence that will occur along the way.
"More often than not, short-term moves in share prices will be a result of changes in a narrative, rather than changes in the facts. Try to distinguish between the two. When the facts change, you must change your mind, but when everyone else is getting swept up by a story, which often will derive from a kernel of truth, try to recognise that and go against the grain.”
