Should Women Be Investing Differently Than Men?
There appears to be some debate among financial advisors about whether women need to invest any differently than men, simply because they’re women.
There appears to be some debate among financial advisors about whether women need to invest any differently than men, simply because they’re women.
Jennifer Montone
The Philanthropic Initiative
jmontone@tpi.org
617.338.5880
Boston, MA, January 23, 2019—Impact investing is fast becoming a mainstream investment strategy, and women control increasing amounts of wealth. These two forces, says Ellen Remmer, Senior Partner at The Philanthropic Initiative (TPI), have the power to revolutionize capital markets. So she and other colleagues from the impact investing field decided to build Invest for Better (janinef1.sg-host.com), an impact investing campaign specifically geared towards women.
“Invest for Better aims to make it easier for women to take action and invest with purpose by addressing their need for information, inspiration, community, and support,” Remmer says. “Even joining the conversation at #investforbetter will connect women to others who are now ramping up or already leading the way.”
The amount of money in impact investments is skyrocketing: a projected $400 billion or more will be in impact investments in 20201, up from $80 billion in 2011. But there is a disconnect between women’s interest in the field and the actions they currently take with their investments.
Why the gap? In addition to the universal barriers to rapid adoption—advisor knowledge and behavior, return myths, limited track record, opaqueness of financial products, limited on-ramps, pipeline, etc.—women’s adoption of socially responsible and impact investing faces the following distinctive hurdles: little time spent on investing, lack of confidence in investment knowledge, widespread underinvestment, and a traditional advisor ecosystem that is not geared towards women’s interest in values-based goal setting.
Invest for Better aims to close the gap. The campaign provides concrete steps any woman can pursue to become an impact investor—everything from investing in a community development financial institution to buying a green bond to becoming an angel investor—and invites women to pledge to take action.
It debunks commonly held misconceptions about impact investing—namely, that investing in your values means you have to take a lower financial return or that only very wealthy people can make socially responsible investments. Invest for Better features a robust set of resources, including tools to help women figure out what’s currently in their portfolios, ideas for how to persuade other stakeholders (including your partner!) that impact investing is a good idea, and ways to find a financial advisor with impact investing know-how. It also connects women to impact investor networks and highlights the stories of real women who are putting their money to work by investing in what they believe in.
Ultimately, Remmer hopes the site and campaign will galvanize more women at all income levels to pursue impact investing in a way that’s right for them.
“Women are controlling more and more of the world’s wealth,” Remmer says. “They are speaking up and strengthening their impact on issues that matter. Women can further amplify this collective voice through purposeful investing, which allows them to carefully steward their assets, find personal fulfillment, and discover the power of the capital markets to make positive change.”
Invest for Better is a project of The Philanthropic Initiative (TPI). If you’d like to learn more about the campaign, please contact Jennifer Montone at jmontone@tpi.org. Women who may be interested in taking impact investing to the next level can also contact Ellen Remmer directly at eremmer@tpi.org.
The Philanthropic Initiative (TPI) is a global philanthropic consulting practice that helps individuals, families, foundations, and corporations develop and execute customized strategies to increase the impact of their giving and achieve philanthropy that is more strategic, effective, and fulfilling. For nearly 30 years, TPI has served as consultant and thought partner to ambitious donors and funders who embrace innovative thinking in their efforts to find local, national, and global levers of change. TPI is committed to actively promoting and advancing strategic philanthropy by conducting cutting-edge research, publishing donor education resources, and training individuals, organizations, and advisors in best practices. TPI merged with the Boston Foundation in 2012, and continues to operate nationally and globally. For more information, visit www.tpi.org or check out our blog Deep Social Impact. We’re also on LinkedIn and Twitter @TPIPhilanthropy