Having grown up in a trading firm, I saw first hand the imbalance in our financial systems. To say life on the trading floor was male dominated would be an understatement. It was easy to see that the individuals who were crowded within the walls of the exchange were not reflective of the world outside of those walls. This is where the idea for “Changing the Face of Finance” began, the idea that changing who participated in trading and investment decisions could shift entire systems. We get the economy we invest in, and including diverse voices at the decision making table, and on the trading floor lead to a more inclusive and potentially more sustainable economy.
At Nia Impact Capital (“Nia”), we know the numbers:
Globally, the percentage of female fund managers has consistently hovered at just about 12%. The number has not increased over the past two decades that researchers have been tracking the data.¹
Of the $83 trillion of managed assets, women owned asset management firms manage just .7% (less than 1%), and when combined with People of Color owned firms that number climbs to just 1.4%.²
Yet, research shows that diverse teams lead to better financial decision making and fewer oversights. Fidelity’s Women and Investing Study found that women generally outperform men in investing.³ “The tendency of women to outperform is not only seen in retail investors,” writes Dr. Daniel Crosby in his book, The Laws of Wealth. “Female hedge fund managers have consistently and soundly thumped their male colleagues as well.”
Investment decisions shape the reality we live in and, each day, investors are influencing which companies get capital and will succeed, all which is connected to the health and sustainability of our communities. Core to Nia’s mission is to train and encourage more women and people of color to sit at the table as asset managers and as investors.
Changing the Face of Finance
As a women-led firm, Nia intentionally seeks to hire, train, and prepare women and people of color to serve as leaders in the investment industry - within our own company and beyond.
We know that broadening the field of impact investing will take deep systems change within a powerful, longstanding industry–and a long-term commitment. We analyzed the current barriers to democratizing access to investing and quality impact investing products and developed our Change the Face of Finance program to address them.
We focus on three core initiatives designed to break open the field and, ultimately, create the change we want to see in the industry. Nia’s Changing the Face of Finance Program includes:
1. Nia’s Internship Program
2. Nia’s Unique hiring approach
3. Increasing the number of women investors
We take a holistic approach to reach and provide opportunities to women at various stages of their careers and investment journey.
Initiative #1: Nia’s Internship Program
Diversifying the financial industry will take a concerted effort to train the next generation of leaders and introduce them to the benefits of having a diverse and equitable team as they begin their careers.
Each year, the Nia team welcomes young women enrolled in, or having just completed, college or graduate programs to our Changing the Finance of Finance Internship Program. Interns learn the ins and outs of impact investing by engaging in hands-on portfolio and company research and receive mentorship from the Nia team.
What our recent interns are saying:
“One of my favorite parts was getting to meet the team in person…to hear about all of the different backgrounds and passions that make up the Nia team. It was truly incredible to be surrounded by a group of so many amazing women working to change the face of finance together.”
– Caitlin, Summer 2024 Intern
“My main takeaway is the critical thinking lens that I developed throughout the internship. Within the sustainability space there is a lot of room for greenwashing or for companies to claim to be sustainable and create sustainability reports that don’t really have the data to support the claims. I definitely think I will take this lens with me throughout the rest of my career …I will be able to analyze info and present it efficiently and in a way that others can truly understand what's actually happening and help firms cross barriers within impact investing.”
– Amulya, Summer 2024 Intern
“I’ve gained very useful insights into market trends and investing. In particular, I sharpened my research skills through all the projects we did regarding diversity metrics and fundamental analysis.”
– Charlotte, Summer 2023 Intern
“Personally, I found the team's composition of strong and powerful women to be truly inspiring. This was my first experience working within such a dynamic group, and I greatly admired the collective strength.”
– Tanya, Summer 2023 Intern
“Nia’s approach to diversity within its investing universe is something that caught my eye from the start. I was able to see how beneficial it is for a company to have a diverse and inclusive team and board of directors.”
– Paula, Content Associate and 2020 Summer Intern
Whether our interns continue on in the field of finance or become impact investors themselves, they take the lessons learned at Nia to strengthen their own voice and skills, to advocate for diversity in the financial industry and leverage investments as an agent for change.
Initiative #2: Nia’s Unique Hiring Approach
At Nia, we are intentional and inclusive in our hiring practices and understand that diversity of perspectives and backgrounds improves our work. In fact, the data shows⁴ that when women invest, they tend to outperform their male counterparts. Maintaining a diverse team - and advocating for diversity across the industry - is not just the right thing to do, it has potential to produce better outcomes.
The financial industry is one that maintains the status quo by rewarding long tenures within its ranks, rather than fresh perspectives and ideas from smart, passionate people with new ideas.
We are committed to hiring both financial rockstars with deep industry knowledge and longevity, as well as people who bring valuable insights from other industries. We provide in-house training and professional development opportunities to all our team members so that women and people of color who bring success, smarts, and skills from other industries can contribute their talents to the vital work of impact investing.
Initiative #3: Increasing the Number of Women Investors
Through education, thought leadership, and direct engagement we are focused on bringing more women to the investment table.
This work is especially important as women make up slightly over half the population yet invest 40% less than men⁵ and control just one-third of total US household financial assets⁶. Meanwhile, men are both more likely to invest their own capital (which they have more of on average due to the historic gender wealth gap⁷) and control household assets.
Investors have the power to put their money to work to reflect their values and build a more sustainable future - and we want more women to have a say in that future. Our outreach efforts and financial product offerings are purposefully designed to welcome new investors into the field.
Making Investing More Approachable
From indices riddled with jargon, filled with hundreds of companies, to complicated hedge funds, too many financial products currently on the market lack transparency and meaning. And they have served to keep potential investors, including women and people of color, out and on the sidelines.
Nia was founded with the mission of bringing impact investing to public equity investing. By constructing portfolios of solutions focused companies, all of which include women in leadership positions, and all of which are poised for growth in the transition to a sustainable economy, we help investors to align their investments with their values. We create transparent products that serve investors at any stage in their impact investor journey. We engage in outreach and education to potential investors to demonstrate that they are both invited, and sorely needed, at the investing table to build the world that they want to see.
Nia investment products come at a critical time. With an increased interest among younger women in investing⁸ beyond retirement accounts and a shift of wealth to women⁹, and the aging of the baby boomer generation, there is the potential for a radical shift in how money is managed across the country. Since inception, Nia has not wavered from its vision. The data make it clear that changing the face of finance is critical to our vision of investing to build the world we want to see. Nia is eager and ready to welcome this new generation of impact investors and values-aligned advisors.
Be a part of the movement - apply to join our team or start investing with Nia.
Sources
Alladi, A. (2023, March 7) The Percentage of Female Fund Managers Is Almost Exactly Where It Was 20 Years Ago.
Knight Diversity of Asset Managers Research Series: Industry (2021)
Flood, C. (2020, September 6) Female-managed US funds outperform all-male rivals.
Maurer, T. (2023, April 30) Why Women Are Better (Investors) Than Men.
Chatzky, J. (2018, September 25) Why women invest 40 percent less than men (and how we can change it).
Baghai, P, et. al. (2020, July 29) Women as the next wave of growth in US wealth management.
Chang, M, et. al. Understanding the Gender Wealth Gap, and Why It Matters.
Dore, K. (2021, October 11) Women investors are still outperforming men, study finds.
Baghai, P, et. al. (2020, July 29) Women as the next wave of growth in US wealth management.
Important Disclosures
The views presented here are those of Nia Impact Capital (“Nia”) and these views may be subject to change. All information is obtained from sources believed to be reliable, yet Nia does not certify the accuracy or completeness of this information.This article does not constitute an offer to sell, or the solicitation of any offer to buy any security. All investments carry risk. An investor is strongly advised to consult with their investment professionals prior to making investments to ensure that they understand any associated risks.
The incorporation of environmental, social and governance (“ESG”) considerations into the investment process may cause the investment adviser to make different investments than other funds that have similar investment portfolios and/or investment styles. Under certain economic conditions this could cause the investment adviser’s performance for any of its portfolios, including the Fund, to be worse than similar funds that do not incorporate such considerations into their investment strategies or processes. In applying ESG criteria to its investment decisions, the investment adviser may forgo higher yielding investments that it would invest in absent the application of ESG investing criteria.