Who Controls Capital: Why Women Making Decisions in Finance Matters

Pam Krueger, founder and CEO of Wealthramp, Ruth Shaber, founder and president of Tara Health Foundation, and Robyn Russell, senior director of the Gender Diverse Investing Collective, sat down at the Women & Worth Summit. They discussed the essential role women play in the financial industry and strategies to address their underrepresentation.

Shaber and Russell are involved in the Gender Diverse Investing Collective, a new initiative targeting gender diversity within investment teams. Shaber's book "The XX Edge" supports the fact that gender-diverse teams consistently outperform single-gender groups. Astonishingly, only 1.4% of U.S. assets are managed by diverse teams. The collective aims to raise this to 33% by 2033, encapsulated in their slogan "33 by 33."

Shaber, with her experience in healthcare, has seen the positive impact of women's decisions but was staggered to discover that men manage 98% of capital. Her book illustrates that women-led investment choices often lead to higher profits.

Both speakers acknowledged women's valuable traits for business success, including loyalty, collaboration, and responsible risk-taking. They warned of the "blindspots" in nondiverse teams, emphasizing that diversity helps create products that cater to a broader population, therefore enhancing outcomes.

Russell pointed to a study showing that gender-diverse teams outperformed all-female and all-male teams by 47 points per year. She stressed that diversifying the money management team is a straightforward strategy to increase returns and reduce risks.

However, the goal, as clarified by the panel, is not to replace men but to diversify management, reflecting where evidence suggests success lies. 

While progress is noted, especially at entry levels, change happens slowly. The standard for female financial advisors lingers at 15%, despite more women earning MBAs and most companies implementing DEI plans.

Russell and Shaber are determined to jumpstart change and have shared their calls to action. Shaber asks everyone, regardless of their position, to start demanding transparency regarding who manages their money. Russell encourages women to contact them on LinkedIn or through the gender-diverse collection. They are always looking for people who can help tell their stories and those with DEI training to help big firms make meaningful changes. If you want to see more women, more people of color, and more money managed by diverse teams, the simplest thing is to reach out to them. 

Krueger concluded the session with the resonant statement, "Diversity equals profitability," encapsulating the compelling argument for enhancing gender diversity within the finance industry. The conversation made a powerful case for gender diversity not just as a moral imperative but as a strategic avenue to greater success and profitability. The proposed strategies and goals set by Shaber and Russell provide a roadmap for an industry that stands to gain significantly from embracing gender diversity.