Female leaders make for good stock picks

Several companies listed in Australia, including Xero and BHP Group, are included in a new global equity fund that tracks organisations that have a high percentage of women in leadership roles.

Kim Fournais, co-founder of Danish trading and investment bank Saxo, told AAP that companies with balanced leadership teams tend to be more profitable and enjoy stronger share prices.

“If you have a male dominated industry there are many things that need to change in terms of inclusiveness, having a ‘no fear’ culture, and also appreciating we are different,” Mr Fournais said.

He said there was a genuine opportunity for people to build wealth by backing changes for societal good.

Saxo’s basket of 30 companies, focused on female leadership, represents $US1.1 trillion ($A1.6 trillion) in market value.

Australia is represented in the list by tech firm Xero, miner BHP and oil and gas major Woodside Petroleum. The new owner of Afterpay, the US-based Block, is also included.

The revenue growth and return on equity across the 30 companies have tracked above the global average, data shows.

The product is part of the expanding ethical investment sector that directs money into funds that meet various social, environmental and governance metrics.

Mr Fournais said he wanted people to use their money to make purposeful and informed decisions rather than feel disillusioned with the financial system.

“It’s also about encouraging the whole culture,” he said.

 

Marion Rae
(Australian Associated Press)

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