Advisors who have lower minimum asset requirements for their clients can consider the active and passive mutual funds available. Most of the passive funds are large-cap U.S. or global in their fund construction and can be used as part of a diversified portfolio. The actively managed funds are generally proprietary to the platforms on which they are offered.
At Veris Wealth Partners, we have some clients that want a total gender-lens portfolio. This approach will include public as well as private equity and fixed-income opportunities. The portfolio might include private loan funds as well as individual public fixed-income securities. We want to have more products available for total portfolio solutions as the demand grows across our client base.
Ellis: Patricia, please give our readers an example of a gender-lens themed fixed-income security that would be appropriate for the right investor client.
Farrar-Rivas: There are mortgage-backed bonds being issued on low-income housing facilities in some cities, which include health care and day care for the resident families and their single, working mother heads-of-household.
Ellis: What fund strategies are available today for including gender-lens themes in a client’s portfolio?
Farrar-Rivas: Many of the gender-lens thematic funds today are focused on leadership. They usually include mandates for the number of women board members, C-suite executives or managers at a firm. They look at which firms have workplace criteria around pay parity, mentoring ladders, opportunities for professional advancement and other benefits for women. Also, do the companies owned provide products and services that are positive for women and girls?
Many gender-lens investors also want some ESG metrics applied to a fund. The choices include index-based ETFs and SMA accounts for municipal, corporate and government bonds. There’s a global loan fund that targets their lending to support women farmers, and another that targets young female entrepreneurs. Single women with children struggle to get access to capital for small business development.
Gender-Lens Advocacy
Ellis: How does gender lens investing focus on shareholder engagement?
Farrar-Rivas: At Veris Wealth Partners, we engage with companies related to more gender-balanced leadership practices, from hiring to promotion from within the firm. We also ask companies to make their Department of Labor reports public so we can find out how they work with multiple gender-lens issues.