INSUBCONTINENT EXCLUSIVE:
NEW DELHI: The increase in women equality could boost global GDP by 31 per cent o r $28 trillion -- the size of the US and China combined --
by 2025, said a BofA-ML report, which suggested a $72 trillion of financial assets will be controlled by women by 2020, double the 2010
level and 1.5 times faster than men.
A higher diversity in management is one of the factors that brings lower volatility in earnings and
But there is still much to do
said.
The foreign brokerage carried out studies on various regions to conclude that women diversity can boost return on equity (RoE),
profits, dividends and market capitalisation, and that too at a lower risk.
For instance, it noted that incentives to close the gender gap
lower earnings risk in the subsequent years
while women comprise 49 per cent of population and 36 per cent of the total GDP, they hold just 12 per cent of board seats and 3 per cent of
CEO positions.
In India, only 39 out of 345 fund managers managing around Rs 22.2 lakh crores assets, are women
They are managing funds either as primary/secondary managers or have oversight as heads of equity/debt.
BofA-ML's proprietary database on
Pacific stocks with at least two female board members have a P/E premium, and higher net profit margins (up 3 per cent) and dividend yield
Much needs to be done to close the gender gap, but progress is being made in tertiary education and laws to support equal pay and
government-assisted childcare
developed nations in both pay and policy gaps
The average SP 500 board has four men for every woman and just 5 per cent of companies have a woman at the helm
Corporate America does not look like Main Street America, the brokerage said.
In Europe, percentage of women in corporate boards has surged
three times over the past 15 years
This trend is expected to surge as one of the European Commission goals for 2020 is to increase the employment rate for women to 75 per cent
positive development as there has been lower volatility in earnings and dividends in the company that are making efforts to increase
diversity.
BoFA-ML said it itself screen for companies that have become more diverse and visibility of earnings/dividends has improved
