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LGIM is shaking up the world of investment management

LGIM is shaking up the world of investment management

Mark.Freed / 23 May 2018

After a diverse investment portfolio?  How about a gender diversity focussed fund?

LGIM has created the first fund that has gender diversity of organisations as an investment criterium – we applaud them.  

As you know, E2W is one of the companies trying to shake up the financial services’ industry when it comes to gender diversity and we’re thrilled that our client, Legal and General Investment Management (LGIM), are doing the same.  As well as employing E2W as a recruitment partner, they are going down a different route to raise awareness about the importance of women in the workplace.

Back in April LGIM said that they were going to start targeting companies about the gender composition of their boards and their organisations as a whole, at annual shareholder meetings; they have already started doing this in the US where they target all male boards.

They’ve now taken this mission to the next level by creating their own fund that favours UK listed companies that champion women.  To qualify as a suitable investment for LGIM’s ‘GIRL’ Fund, a company is tested by LGIM on four criteria and must hit at least 30% in all four:

  • women on the board of directors, 
  • women executives, 
  • women in management, and 
  • women in the workforce.

Now that Gender Pay Gap reporting data is available too, LGIM say that they may use that too in the future.

The L&G Future World Gender in Leadership UK Index Fund (‘GIRL’ fund) is the first fund to place gender within a top 350 UK company as the overriding investment criterium.  It aims to put pressure on companies to change their employees’ gender mix whilst also providing investors with a chance to change society.  It may be unchartered territory for them but we’re sure that many other investment managers will start to follow suit.

“It’s great that LGIM are making waves in investment funds in this way.  We are thrilled that they are attracting headlines on gender diversity and bringing it to the fore once again.”  Mark Freed, CEO E2W

“On International Women’s Day we talked about pressing for progress and this is a superb example from LGIM.  I think it’s great that they’re using their knowledge and expertise in the field to make a difference in this way.”  Tina Freed, COO E2W


If you have an interesting gender diversity story to share with us, please contact Mark Freed or Tina Freed

 


 

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