Provides Framework to Clarify Range of Approaches Available to
Investors to Integrate Gender Diversity into their Investments
Without Sacrificing Potential Return
Investors seeking opportunities to effectively integrate gender
diversity criteria within an investment portfolio now have access
to a new framework to help translate social change and greater
gender equality into an actionable plan for investing.
Morgan Stanley’s Investing with Impact Platform has introduced
the Gender Diversity Tool Kit. The Tool Kit is designed as a
roadmap for Morgan Stanley Financial Advisors to use with
individual and institutional clients to develop a tailored
investment approach to integrate gender diversity criteria into
their investment portfolios.
“We are pleased to provide our clients with this latest Tool
Kit,” said Lily Scott Trager, Director of Investing with Impact for
Morgan Stanley Wealth Management. “As an investment opportunity,
gender diversity is about identifying the ways in which achieving
balance in representation, empowerment and economic opportunity is
material for financial outcomes. With the support of a Morgan
Stanley Financial Advisor, investors can take actionable steps
towards incorporating gender diversity into investment decisions in
a variety of ways.”
The Morgan Stanley Gender Diversity Investment Framework offers
multiple approaches that can be used individually or together:
Gender Diversity as a Screen – Investors can minimize
exposure to companies with poor gender diversity records. This
approach may reduce exposure to certain long-term risks within a
portfolio, or provide investors with a mechanism to align their
investments with a core value or social mission.
Gender Diversity Leaders – In addition to mitigating
risks associated with poor practices, investors may also use gender
diversity criteria to identify companies with potentially better
risk/return profiles. For some investors, it is important to
identify companies with leading gender diversity records as a means
of achieving both financial return alongside greater gender balance
or equality.
Gender Lens Investing – Some investors may wish to more
proactively influence gender diversity outcomes. Through this
approach, financial decisions are evaluated with the objective of
creating greater gender balance and a better world for women and
girls. The solutions or themes most commonly associated with gender
lens investing are:
- Workplace Equity (including support for
women entrepreneurs and business owners),
- Access to Capital for women (including
financial services and land ownership), and
- Products and Services benefiting women
and girls (for example, affordable childcare and maternal
healthcare).
Within each of these approaches across the framework, there are
opportunities for investors to generate financial return while
creating a social impact. Examples include investments in companies
with greater representation of women on Boards of Directors and in
senior leadership, and in funds focused on women’s healthcare
solutions or increasing access to capital for women entrepreneurs
in developing countries.
Shareholder Engagement – Across all approaches,
engagement with publicly traded companies – through proxy voting,
filing of resolutions and ongoing dialogue – can be an important
and effective tool in driving better outcomes.
Manager & Strategy Selection – Investors seeking to
advance gender diversity may choose to seek out portfolio managers
or investment firms that are women and/or minority owned.
Whether investors are seeking to mitigate long-term risks or
potentially enhance returns by leveraging gender diversity, the
Tool Kit aims to clarify the full range of approaches to
integrating gender diversity criteria across asset classes within
an investment portfolio.
“As greater gender diversity and balance is reached across the
macroeconomic landscape and as the business case for gender
diversity becomes more apparent, our objective is to help investors
position their portfolios to take advantage of these
opportunities,” said Lisa Shalett, Head of Investment &
Portfolio Strategies for Morgan Stanley.
Morgan Stanley’s Investing with Impact Platform, launched in
2012, enables clients to align investment decisions and personal
values without sacrificing potential financial performance. “Large
institutions, such as Morgan Stanley, have a unique role to play in
helping to create change and influence the direction of the broader
investing with impact space – as investor interest continues to
grow in size and sophistication so does our Platform,” said Hilary
Irby, Head of Investing with Impact for Morgan Stanley. The broader
Investing with Impact Platform now offers more than 130 investment
products delivering positive environmental and social impact
alongside opportunities for financial performance.
To learn more about the Gender Diversity Tool Kit, please visit:
www.morganstanley.com/ideas/gender-diversity-toolkit
Morgan Stanley Wealth Management, a global leader, provides
access to a wide range of products and services to individuals,
businesses and institutions, including brokerage and investment
advisory services, financial and wealth planning, cash management
and lending products and services, annuities and insurance,
retirement and trust services.
Morgan Stanley (NYSE:MS) is a leading global financial services
firm providing investment banking, securities, wealth management
and investment management services. With offices in more than 43
countries, the Firm’s employees serve clients worldwide including
corporations, governments, institutions and individuals. For
further information about Morgan Stanley, please visit
www.morganstanley.com.
This material has been prepared for informational purposes only
and is not intended as an offer or solicitation with respect to the
purchase or sale of any security. It does not provide individually
tailored investment advice. It has been prepared without regard to
the individual financial circumstances and objectives of persons
who receive it. Morgan Stanley Smith Barney LLC (hereafter "Morgan
Stanley" or “the Firm”) recommends that investors independently
evaluate particular investments and strategies, and encourages
investors to seek the advice of a Morgan Stanley Financial Advisor
or Private Wealth Advisor. The appropriateness of a particular
investment or strategy will depend on an investor’s individual
circumstances and objectives.
Morgan Stanley Smith Barney LLC offers investment program
services through a variety of investment programs, which are opened
pursuant to written client agreements. Each program offers
investment managers, funds and features that are not available in
other programs; conversely, some investment managers, funds or
investment strategies may be available in more than one program.
Morgan Stanley’s investment advisory programs may require a minimum
asset level and, depending on your specific investment objectives
and financial position, may not be suitable for every investor.
Investing in the markets entails the risk of market volatility.
Investing based on gender diversity criteria is subject to certain
risks such as investment style risk. Because such criteria exclude
some investments, investors may not be able to take advantage of
the same opportunities or market trends as investors that do not
use such criteria.
©2016 Morgan Stanley Smith Barney LLC. Member SIPC. Morgan
Stanley Wealth Management is the trade name.
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Morgan StanleyMedia RelationsChristine Jockle,
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