Q2 2022 Review

Gender Lens Investing Q2 2022 examines the second quarter 2022 performance and composition of gender lens equity funds and offers overviews of DEI equity funds and gender lens fixed income vehicles. The review explores the dynamics shaping publicly available gender lens investing including:

An update our Scorecard Rankings, and A Country GLI Perspective.

Key Findings

  • Publicly traded gender lens equity funds (GLEFs) totaled US$4.7 billion in AUM as of June 30, 2022. AUM growth for the quarter was 13%, including the funds added to our coverage universe.
  • This quarter we initiated coverage of four gender lens equity funds in the global equity segment.
  • The gender lens equity funds turned in solid relative performance in a down market.
    • Of the 15 global equity GLEFs with available performance data, nine outperformed at least one broad market index for the quarter, while one posted in-line performance. Five trailed the market.
    • The Solactive Equileap global gender lens equity indexes strongly outperformed the broad market for the quarter.
    • Eight of the nine U.S. equity GLEFs outperformed the broad market for the quarter, while one trailed modestly.
  • There are 18 global equity funds and 18 regional equity funds available to individual investors. These are domiciled in the U.S., Canada, the E.U., Republic of Korea, and Japan.
  • Gender lens fixed income AUM was US$7.6 billion as of June 30, 2022. Quarterly AUM growth was flat amid a rising interest rate environment. AUM in these funds and vehicles grew 75% in 2021. We also watch sustainable bonds that employ a gender lens.
  • The recently issued Jasiri bond, the first gender bond in sub-Saharan Africa, was listed on the DSE during the quarter.
  • Diversity, equity, and inclusion (DEI) funds totaled US$231 million in AUM as of June 30, 2022. This growing group of funds focuses on investing in companies with robust DEI policies. In our DEI coverage universe, one new fund launched during the quarter and one fund closed.
  • The report provides a unique country analysis of investing in women. We advocate for and outline an Investment-in-Women pillar for inclusion in global gender equality country rankings.
  • The Parallelle Finance Scorecard is a tool for evaluating funds with an in-depth gender lens.
  • Scorecard rankings of the gender lens equity funds in our coverage universe and related commentary are included in the report.

Figure A: 12 Largest GLEFs by AUM (in US$ millions)

As of June 30, 2022; Source: Fund fact sheets

Figure B: GLEF Top Absolute Performers. Along with the broader market, the group of 36 gender lens equity funds (GLEFs) generally traded down for the three-month period ended June 30, 2022. Many of the global equity and U.S. equity funds outperformed at least one broad market index for the 3-month period. A full discussion of performance and composition of the GLEF group is included in the report.