Gender-diverse teams outperform

Published on
March 6, 2020
twitter sharing button
linkedin sharing button
Gender-diverse teams outperform

Superannuation members can have greater confidence in their fund if they are led by a more gender-diverse team, according to research from Rainmaker Information.

Superannuation funds with a high proportion of women inleadership positions out-performed male-dominated funds by 0.6%p.a. over three years on average. This finding has remained true inRainmaker's researchover several years of analysis.

"This out performance may seem small, yet compounded overa member's working life it can translate into tens ofthousands of extra dollars in your superannuation account,"said Alex Dunnin, executive director of research at Raimaker.

On average four in 10 of the trustees overseeing the MySuperproducts were women. But the ratio of funds having a woman as chairor CEO was only about half of this and an even smaller proportionhave women as their fund's chief investment officer.

These figures identify that more work is needed in order toachieve gender diversity across the industry, and the strongperformance results only add further weight to ongoing calls forchange.

Leading the charge for balanced leadership teams and the growingrole of women within superannuationleadership positions is the Not For Profit sector.

Super funds found to have higher than average proportions ofwomen in senior leadership positions are (sortedalphabetically):

  • CareSuper
  • Club Plus
  • Energy Super
  • First State Super
  • First Super
  • HESTA
  • NGS Super
  • REI Super
  • Sunsuper
  • Telstra Super
  • VicSuper
  • Vision Super

"MySuper default investment choices that have higher thanaverage female representation in their leadership teams were foundto out-perform male-dominated funds by 0.6% p.a. over three yearsand 0.4% p.a. over five years," said Dunnin.

To run this year's study Rainmaker categorised singlestrategy MySuper products according to the gender mix of theirtrustee board and whether they had women as their chair, chiefexecutive or as one their deputies.

No relationship was found between a MySuper product'sperformance over three years and the gender mix of the trusteeboard. However, performance benefits occurred for products offeredthrough super funds that also have a woman as their chair orCEO.

"For these products the performance boost was 0.9% p.a.over three years." said Dunnin.

"The purpose of Rainmaker's study is to explore ifthere's a performance benefit for gender diverse super funds.The clear answer is yes."

Rainmaker's analysis also revealed Australia's topfunds for having the most female members.

Funds with the most female accounts
1 Rest 1,209,652
2 AustralianSuper

860,195

3 AMP Super

857,405

4 Sunsuper

700,666

5 HESTA

684,902

6 Hostplus

612,812

7 First State Super

561,110

8 MLC Super

512,637

9 BT

459,652

10 ANZ Wealth 400,673
Source: APRA, analysis by Rainmaker Information
Funds with the highest share of female accounts
1 Guild Super 84%
2 HESTA

80%

3 Mercy Super

77%

4 The Victorian Independent Schools Superannuation Fund

74%

5 Australian Catholic Superannuation and Retirement Fund

74%

6 NGS Super

71%

7 legalsuper

71%

8 Lutheran Super

69%

9 Catholic Super

67%

10 First State Super 65%
Source: APRA, analysis by Rainmaker Information
Get connected with leading insights for financial services professionals

Contact our Business Development team to receive further details of Rainmaker's products and services.

GET IN TOUCH