Gender-Lens Investing Is Taking Off, But Many Women's Assets Still Need Professional Management, Says UBS

A new report from UBS, titled “Gender-lens investment: Understanding the how and establishing the why,” reveals a gradual shift in gender-lens investing. It's moving from being a general trend to a more structured framework that sets clear capital goals and measures its impact on narrowing the wealth gap between men and women. The report shows that women own about a third of individual financial assets in both the United States and the European Union. However, a significant 53% of these assets are not professionally managed. At the same time, a funding gap persists: companies founded entirely by women received only about 1.3% of venture capital funding in these markets. Furthermore, women hold just 29% of senior executive positions, despite having a larger presence in junior and mid-level roles. Representation on corporate boards also varies by region. Women make up about 30% of boards in the US and 34% in the EU, compared to roughly 20% in Asia. Their representation in executive roles remains lower than their presence on boards or in the overall workforce. The report views gender-lens investing as a multi-faceted system. This includes investing in women-led funds, women-led companies, and companies that expand wealth-building opportunities for women across sectors like health, education, and financial services. This reflects the diverse ways capital can be directed within this framework. In the asset management sector, the report notes that women account for only about 12% of portfolio managers globally. Meanwhile, about 21% of mutual funds and index funds have at least one female portfolio manager. Despite this disparity in representation, the report doesn't find significant differences in financial performance between funds managed by all-female, all-male, or mixed teams. Looking at public markets, the analysis covered nearly 5,300 listed companies worldwide. Only 359 of these are led by female CEOs. Globally, women's average representation on boards is about 30%, but the gap in executive positions continues. Regarding the Middle East, the report includes the region in an analytical sample of 112 companies for global comparison. However, it doesn't dedicate a separate chapter or provide country-specific details. Instead, it includes the region within indicators for representation on boards, executive management, and the workforce, as well as institutional policies related to the work environment and inclusion. When it comes to investment products, the report identified about 86 gender- or social-focused investment strategies by the end of 2025, with total assets under management reaching approximately $16 billion. The majority of these strategies, nearly two-thirds, are concentrated in equities, compared to one-third in fixed-income instruments. European strategies dominate, accounting for 74%, while the US and Canada make up 26%, with limited presence in Japan. In fixed-income markets, the report highlights the growth of the social bond market, which has reached about $1.5 trillion. This growth is primarily driven by the Asia-Pacific region, followed by Europe, with government and semi-government entities playing a prominent role in issuance. The report also notes the emergence of "orange bonds" as a tool to finance projects supporting gender equality. For private markets, the report reviews about 470 women-led funds with total assets nearing $187 billion, and an average fund size of approximately $400 million. The estimated average internal rate of return (IRR) for these funds is about 13% annually, with 52% of them ranking in the top half for performance compared to their peers. Finally, the report establishes a framework for measuring the effectiveness of this type of investment. This involves clear mechanisms for directing capital and setting related goals, such as reducing wage gaps, increasing women's participation in the labor market, and enhancing access to funding and financial decision-making. This framework reflects a global evolution in how gender-lens investing is approached.