The Future World GIRL Fund

gender

Helena Morrissey

30 Sep 2018

Gender inequality is one of the biggest issues of our time – and one that generates so much frustration. Rather than feeling trapped or despondent, let’s do something about it. That’s why we’re excited to launch the Future World GIRL Fund, which empowers all of us to use our money to help improve gender diversity in the UK.

The fund works by favouring those companies which have achieved higher levels of gender diversity.

When we invest in women’s success, we are investing in the success of businesses.

Say hello to the new Future World GIRL Fund

We believe the best business decisions are made when there’s a diverse group of people debating and challenging them. That’s why the Future World GIRL Fund focuses on UK companies that are committed to gender diversity at board level and beyond. Increasing gender diversity means different perspectives get heard, which can lead to better outcomes for the customer, company and society. It’s not just the right thing to do; it makes business sense. #EmpowerWomen

Girl fund

Girl fund video

"This is a fund that can make a difference, and make a positive difference" Nigel Wilson – Legal & General Group CEO

£180 billion

Gender parity could add an estimated £180 billion to the UK’s GDP. *

54%

Diversity in the boardroom has increased 16% since 2014 and 54% since 2010 **

£123 billion

The gender pay gap costs te UK economy up to an estimated £123 billion ***

Diversity should be seen as the solution, not another problem to solve

Don’t just take our word for it: hear key voices on gender diversity:

How does the fund work?

The Future World GIRL fund invests in companies based on how they are performing against four measures of gender diversity. We take around 350 of the largest companies in the UK and give them a score between 0-100 based on:

  • The percentage of women on the board of directors
  • The percentage of women who are executives
  • The percentage of women who are managers
  • The percentage of women who are in the workforce

 

Companies must achieve a 30% representation of women in these four measures before they recieve a positive diversity score. 

We will engage with low-scoring companies to discuss how they can improve their gender diversity.

 

A new kind of score

The Future World GIRL fund tracks our newly created ‘Solactive L&G Gender in Leadership UK Index’.

We apply our proprietary gender diversity scores to the index, which forms our original investment universe, ‘tilting’ the index in favour of high-scoring companies and away from low-scoring ones.

Find out more

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Diversity champions for almost a decade

We have been talking about the benefits of diversity with companies, recruitment agencies and at a higher policy level since 2011.

We’ve also been long supporters of the 30% Club, The Diversity Project and a signatory to the Women in Finance Charter.

 

Here are some key milestones in our gender diversity work.

2010 - We became a contributing supporter to the Davies Report and Hampton-Alexander Review.

2015 - We started voting against Chairs of all-male boards at FTSE 100 companies.

2016 - We started voting against Chairs of all-male boards at FTSE 250 companies.

2018 - We started voting against FTSE companies with less than 25% female board members.

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Together we can own our world

Please remember the value of your investment and any income from it may fall as well as rise and is not guaranteed. You may get back less than you invest.

Risk warning

Please remember the value of your investment and any income from it may fall as well as rise and is not guaranteed. You may get back less than you invest . Tax rules for ISAs may change in the future and their tax advantages depend on your individual circumstances.

Please note the information, data and any references in this article were accurate at the time of writing. Please check the date of the content if you’re looking for up to date investment commentary or tax-year related information.