My first boss in the investment industry was named Suzann. I did not know it at the time, but that was a pretty unique situation in the investment industry. You see, even more so in investments even than in other industries, women are an under-represented part of the industry. Women in power in the investment field, even less so.

And that’s too bad—not just for the obvious reasons, but for the clients, too. You see, it has been proven that women are better investors than men. Here’s an article I wrote recently on the topic: https://financialpost.com/investing/five-reasons-women-are-better-investors-than-men

Women investors get better returns than men, plain and simple. This would result in an evolutionary process in a fair world, and investment clients would demand more women managers looking after their assets. After all, patients with medical issues like to seek out the best doctors—shouldn’t it be the same for your money? But, though women represent more than 53% of all jobs in the financial industry, they make up less than one-third of the managers in the sector: https://www.mckinsey.com/industries/financial-services/our-insights/closing-the-gender-and-race-gaps-in-north-american-financial-services

Put in a truly Canadian way, that’s like having a hockey team of 20 players, but only playing three of the best ones in the big final game. It makes no sense.

Investing can be emotional, and the naysayers might say women, being naturally more emotional, are thus disadvantaged. But the facts prove otherwise. When things get rough, men tend to want to “prove something,” and in investments, this can be disastrous thinking. The ‘market’ is always right—even if it disagrees with you. Men have a harder time understanding this. I have seen male portfolio managers destroy their careers with the thinking, “I am right and everyone else is wrong”. Remember this the next time you are shopping for a portfolio manager or fund. 

While we are on the topic, perhaps households should pay attention, as well. In a standard household, it is very common for the man in a couple to look after the family’s finances. This is not always bad, of course, but can certainly create problems if sudden changes occur, such as death or divorce. Often, women in these situations can be unaware of what’s going on with their money. We think both sides of a couple should participate in a household’s financial planning. In addition to more of a ‘team’ approach, which will ensure all family members’ goals are met, it takes advantage of the aforementioned proven fact that women will likely help the family’s finances improve faster than the men.

Wishing you a Happy International Women’s Day,

Sincerely,