Investing in Women, Impacting the World

How Impact Investing moves capital to where it’s needed most
Apr 25, 2022 11:10 AM ET

Investing in Women, Impacting the World

by Stella Tai of Praxis Mutual Funds 

In my 15-year career working as a woman in impact investing and its various facets geared towards investing in women, I have learned that communities and families benefit greatly when women thrive economically.

In December 2021, I had the privilege of visiting several organizations in Kenya supported through Praxis Mutual Funds’ commitment to community development investing. This was alongside a visit to my family in my birth country, after five years of being away. This article is a personal reflection on how impact and gender lens investing delivers real-world impacts – and how advisors can help their clients understand those impacts.

Impact investment moves capital to where it’s needed most. This often revolutionizes the lives of women and girls. During my visits, I saw what capital was achieving, on the ground among rural women, many of whom were poor, and on small farms using affordable products developed and customized to meet their needs. This solidified the importance of this work in my mind.

Gender lens investing (GLI) is critical in closing global gaps in access to capital and thereby increasing human capital wealth, education and helping countries achieve their full developmental potential. In a more diverse and equal society, everyone benefits. Impact investments with a gender lens are projected to increase over the next decade across all asset classes. In recent years, we’ve seen growing demand from investors to take gender into account when considering impact investing.

Additionally, the projected wealth transfer to women is predicted to increase from about $50 trillion in 2015 to $72 trillion, that is two-thirds of the worlds’ wealth, by 2030. Women investors are more likely to demand increased inclusivity, diversity, and values-aligned investing, which may lead to increased consideration of gender in impact investing. 

Read Stella's full article with many insights from her community development investing trip to Kenya -- https://greenmoney.com/investing-in-women-impacting-the-world

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