How Dodge & Cox Leads The Way In Putting Women “In The Money”

woman portfolio manager

Women represent about 45% of U.S. millionaires but are severely under-represented among professionals advising women on their personal finances and investments.

Finance is still a man’s world, but leading mutual fund company Dodge & Cox is trying to break the mold.

At Dodge & Cox, fully 25% of portfolio managers are women, compared with only 9% on average at other large mutual fund companies. Investment firm Morningstar surveyed the largest asset managers in the U.S. to compile the gender diversity data.

“The number of female portfolio managers is actually growing across the industry,” said Erin Davis, Morningstar senior equity analyst, in an interview.

Women still under-represented in finance

Still, the financial sector continues to lag behind other professional sectors in terms of gender diversity.

According to Morningstar, about 63% of accountants and auditors, 37% of doctors and 33% of lawyers are women.

But less than 23% of Certified Financial Planner professionals are women, a fraction that hasn’t budged in decades. And only an estimated 8% of investment advisory firms (like ours) are owned and operated by women.

Why it matters

Dodge & Cox, based in San Francisco, provides professional investment management services and runs several highly-ranked no-load stock and bond mutual funds.

It’s a member of a very select club  of investment managers known for having among the longest manager tenure and highest management retention in the industry. That means its portfolio managers – the people who manage your money – have been at the firm for many years, giving the company stability, consistency, and a focus on long-term results.

Why is it important to have more women investment professionals at firms like Dodge & Cox? Morningstar’s research shows that adding women to an all-male investment team helps to produce the best investment results.

Women now make up almost half of U.S. millionaires, and are on course to control even more wealth in the future.

Female financial professionals have a better understanding of the issues women face, and can provide woman clients with better advice tailored to their real-life wants and needs.

 

About Mari Adam

Mari Adam, Certified Financial Planner™ and President of Adam Financial Associates Inc, has been helping individuals and families chart their financial futures for over twenty-five years. Have a question about your financial situation? Ask Mari!

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