Gender equality and social factors also important for business success

Gender inequality is still a problem worldwide and has many facets. One aspect is to end the financial and professional discrimination against women. A calculation by the United Nations shows that it would take almost 300 years to achieve full gender equality worldwide at the current rate of progress. In the financial sphere, the still very different income and wealth levels of men and women stand out. In Germany, for example, women earn on average 18 percent less than men and receive 53 percent less pension.

High pension gaps and low equity exposure

"Despite the high pension gaps, only one in eight women is engaged in the stock market. That has to change," says portfolio manager Katharina Seiler. Even if the financial disadvantages of women are still pronounced, there are definitely rays of hope: according to data from Eurostat, the statistical office of the European Union, the income differences between the sexes are significantly lower for young workers newly entering the labour market than for those who have been in the workforce for longer. And there also seems to be a change in thinking about capital investment. In 2022, more women (482,000) than men (338,000) in Germany decided to start investing regularly in shares, reports the Deutsches Aktieninstitut.

Social factors influence corporate success

Gender equality also plays a major role with regard to the investment or company perspective. "Social factors such as the fair treatment of employees, flexible working conditions or gender diversity increasingly determine corporate success," says Seiler. A higher gender diversity in companies, as evidenced by an above-average proportion of women in management positions, for example, tends to lead to higher returns on equity and lower earnings volatility. Gender equality would also have an extremely positive effect on global growth prospects – according to World Bank calculations, gross national product per capita would be almost 20 per cent higher.

About DWS Group

DWS Group (DWS) with EUR 821bn of assets under management (as of 31 December 2022) aspires to be one of the world's leading asset managers. Building on more than 60 years of experience, it has a reputation for excellence in Germany, Europe, the Americas and Asia. DWS is recognized by clients globally as a trusted source for integrated investment solutions, stability and innovation across a full spectrum of investment disciplines.

We offer individuals and institutions access to our strong investment capabilities across all major liquid and illiquid asset classes as well as solutions aligned to growth trends. Our diverse expertise in Active, Passive and Alternatives asset management – as well as our deep environmental, social and governance focus – complement each other when creating targeted solutions for our clients. Our expertise and on-the-ground knowledge of our economists, research analysts and investment professionals are brought together in one consistent global CIO View, giving strategic guidance to our investment approach.

DWS wants to innovate and shape the future of investing. We understand that, both as a corporate as well as a trusted advisor to our clients, we have a crucial role in helping navigate the transition to a more sustainable future. With approximately 3,800 employees in offices all over the world, we are local while being one global team. We are committed to acting on behalf of our clients and investing with their best interests at heart so that they can reach their financial goals, no matter what the future holds. With our entrepreneurial, collaborative spirit, we work every day to deliver outstanding investment results, in both good and challenging times to build the best foundation for our clients’ financial future.