Tag Archives: women in finance

WIIF Women in Investment & Finance: a swing and a miss – a series exploring why companies aiming for diversity are striking out

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A Student Perspective

My name is Bridget Murphy and I am a senior studying accounting and finance at Bethel University in Saint Paul, Minnesota.

I had the privilege to compete in the 2019 Midwest Regional CFA Research Challenge, where my team and I presented our hold recommendation on a biotechnology company that we had researched over a period of five months. During this time, we examined the company’s financials, management team, and business strategy as well as the competitiveness and risks of the industry as a whole. The opportunity to compete in this challenge was immensely beneficial to me. Compiling a research report on a complex company allowed me to apply my knowledge from almost all of my business classes into one project. Even though this was an investment report, I was able to use my accounting background to provide a new way of looking at things. My favorite part about competing was being able to work alongside my team and bring all of our different ideas together into one comprehensive report.

I decided to participate in this competition to step outside of my comfort zone. Though one of my majors is finance, I am going into the public accounting field, and after graduation (spring 2019) I will be working at an accounting firm as an auditor. Even so, I recognized that getting more experience in finance would be beneficial to my learning and push me to explore all my options. Working on this project allowed me to understand what finance has to offer. It gave me hands-on experience of the technical knowledge I have gained in my courses at Bethel.

My team was comprised of five individuals, and I was the only female. I was also the only female competing in the regional finals. Though I have gotten used to being the only, or one of a few, females in my business courses, I was very surprised that I was the only one among all five teams presenting at the CFA Research Challenge. Before this experience, I was aware that finance was a male-dominated field, but had not personally experienced it. Being the only female was a bit discouraging. At the beginning of my college career I will admit that, at times, I felt intimidated to be surrounded by males in my finance courses. However, as I gained knowledge and started to understand what I was learning, I was no longer intimidated. I am also very lucky to have supportive professors who instilled in us that we have a voice and we are equal. Through school and internship experiences, I have met many women who I consider to be role models, and they encourage me to work my hardest and push through trials. I would encourage women who are thinking about majoring in finance to not be intimidated, and to step outside their comfort zones. I believe that women will continue to pursue finance as more women already in the field continue to share their experiences and strengths with others.

#changingperceptions

Are you interested in contributing a blog to this important series? E-mail Diane at support@cfamn.org to volunteer.

CFA Society boasts three Top Women in Finance

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On Thursday, November 19th, Finance & Commerce Magazine hosted its 15th annual “Top Women in Finance” awards dinner to recognize the outstanding efforts of women in Minnesota who are making noteworthy contributions to their professions, their communities and society at large. The CFA Society of Minnesota is proud to have had three of its members receive this honor in 2015. They are:

Erica Bergsland, Vice President and Director of Research and Trading at Advantus Capital Management.

Jessica Murray, Intermediate Portfolio Manager at Thrivent Asset Management, and Treasurer of the CFA Society of Minnesota.

Debra Ann Sit, Senior Vice President of Sit Investment Associates, who received the award posthumously. Debbie passed away in June 2015 after battling cancer. Her husband, Peter Berge, accepted the award on her behalf.

To be considered for this award, each candidate was nominated by co-worker or other associate. All nominations were vetted by a panel of expert judges representing business and academic interests across Minnesota. All three women have been outstanding Investors, committed to their profession and to their respective communities, and strong supporters of the CFA Society of Minnesota for many years.

In their remarks to Finance & Commerce Magazine, both Erica and Jessica voiced continued commitment to achieving both excellence and diversity within the Investment community. The different viewpoints and experiences of the Society’s members have been a source of strength that both hope will continue to grow.

All three women exemplify the CFA’s high standards of professionalism and integrity. Please join the entire CFA Society of Minnesota as we congratulate Erica, Jessica, and Debbie.

A Letter from Your Society President – November

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Joshua M. Howard, CFA

Last month I attended two events focused on increasing the number of women in the Investment industry. The first event I attended was a presentation and debate on gender in the industry at the CFA Institute’s Society Leadership Conference in Hong Kong. The second event was a panel at the University of Minnesota, led by four female CFA charterholders, called “Paving the Way for Our Future Industry Leaders”. Both events discussed demand side and supply side issues with getting women in the investment industry and keeping them there once they start families.

It became clear during both discussions that the industry still presents some challenges for women (and men) in its work-life balance, sometimes stressful working conditions and occasional machismo culture. It was generally agreed, however, that great strides have been made at most firms in the last twenty years to improve the image of the industry and to achieve more acceptable working conditions for both men and women. Also, it seems that most employers strongly desire diversity on their teams – in gender, race, socio-economic background and approach to problems. Study after study has shown that diverse teams produce better results than homogenous ones, and are better as assessing possible risks. While even very talented women may have had a very hard time entering the industry in the 1980s, now they are strongly desired at many firms.

Despite all the change in industry culture and the increase in demand by employers for more women in their companies, we still have a supply problem. Approximately 20-25% of CFA charterholders in the U.S. are women, a range that has held steady for many years. Women make up the same percentage of candidates as well, so the overall ratio will not change anytime soon, at least in North America. More and more women are entering formerly male-dominated and demanding fields like engineering, medicine and law, but for some reason our industry has remained unattractive for most women who would otherwise be highly qualified to manage money, provide financial guidance to clients, trade bonds or manage equity risk. This is not true globally, as female CFA candidates in East Asia, especially China, are taking the CFA exams at the same rate as men.

What is it about our industry that fails to attract women and millennials? While there are obviously numerous explanations, I believe two reasons are very important.

The first is that we as an industry do a poor job of educating the public and the next generation about what it is we do all day long. “Finance” can mean many different things, many of which are very opaque to the average individual. We have not put in the time and effort to mentor and guide future leaders on the difference between a trader, an investment banker, a portfolio manager, a financial advisor or a risk manager. There are many different fields in our industry, but most people outside our industry are only acquainted with one or two of them (either from watching the movie “Wall Street” or from watching their cousin day-trading in his parent’s basement, wearing his pajamas all day long.)

The second reason is the way the industry is portrayed in the media. Most often when finance is in the news it is because of a rogue trader losing billions of dollars or a Libor-manipulator lying to his firm and regulators. Our industry is seen by many as unethical, full of money-loving jerks who like private gains but socialized losses. We do not do a good enough job of making sure everyone understands the benefits of a well-developed, well-regulated financial system, one that takes excess savings and deploys the money to its most productive use elsewhere, such as in infrastructure, car loans or startup companies. Our Industry allows individuals to smooth their consumption over their lifetime, and to store up savings for bad times. It allows for the purchase of a home well before most people would have the resources to buy one, and gives capital to entrepreneurs who attempt to create the next great device, software or medicine.

Most of us who work in their industry love our work and can’t comprehend why so many people, including women, fail to see the benefits of working in a fast paced, competitive, ever-changing industry, alongside smart, talented colleagues. We need to do a better job of educating the next generation about the variety of opportunities available in finance, and most importantly, we must maintain our high ethical standards, raising the profile of the industry for our future coworkers and clients.

Joshua M. Howard, CFA
President of the Board of Directors
CFA Society Minnesota

Watch Me Whip

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Susanna Gibbons, CFA

As I was doing The Whip last night in my living room, my son covered his eyes with his hand and walked out with a disgusted “that’s just wrong.” I yelled after him “I don’t need your permission to do The Whip…hey, are you listening to me…? Anybody can do The Whip if they want to. Anybody!”

So much has been written over the past couple of years about the lack of diversity in the investment business. We’ve tried the mentoring programs, we’ve highlighted the performance benefits, we’ve taken the negotiation courses, but for all of the hand-wringing, it feels like we have gotten nowhere. According to the CFA society, we have in fact gotten nowhere. Focusing just on women, there are currently a lower percentage of women applying to take the CFA exam than there were 20 years ago. Most of the people I know in the business say they can’t find the diverse applicants they want to hire. And women in particular seem to be avoiding the business because of the lack of visible, viable career paths – there’s no one who “looks like us,” so how can we possibly imagine an investment career?

Last night, as my progeny turned his back on my dancing, I had a moment of clarity around this problem. We are all, always, seeking to affiliate. We have fairly rigid ideas about who can do what. In the investment business, we have collectively allowed this urge to overwhelm our rational judgment. We have become increasingly balkanized in our own affiliation groups, somehow unable to step beyond these boundaries to make the choices we know will result in better businesses and better careers.

For those in charge of the hiring, that means you have to stop thinking about diversity as simply a willingness to accept those who show up. You actually have to go out and build the pipeline, develop the networks, and find a way to reach the people who currently are not reaching you. Stop thinking about this as an altruistic burden; it will be a profitable investment in your business.

And for those among us trying to break in or move up – they ain’t going to give it to us, you gotta take it. Stop waiting for permission, stop expecting to find affiliation. Move outside your comfort zone and pursue the investment business because it is exciting, intellectually challenging, ever changing and rewarding. Even if you don’t end up where you initially intend, the journey will be amazing.

Take that, my little teenager. Watch me whip.

What Would Gender Balance Mean to the Finance Industry?

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Lissa Rurik, CFA, CAIA

Recently the U of MN’s Carlson School Funds Enterprise hosted a Conversation of Gender Balance in Finance. The two hour presentation hosted two speakers followed by a panel discussion with questions from the audience. The afternoon was inspired after a similar event focusing on Women in Entrepreneurship resulted in a significant increase in women contestants at the recently conducted Minnesota Cup. It is hoped that as a community we can encourage more women to consider careers in finance if we can shed some light on the topic through exploration and discussions such as this.

The Keynote speaker was Sharon McCollam, the Chief Administrative and Chief Financial Officer of Best Buy Co., Inc. Ms. McCollam sees the topic of women in leadership in finance as not only important for the growth of women in their careers, but also because such diversity is important to a company’s ultimate success, as it is valuable for different points of view in all aspects of a company’s activities.

Critically important is how women show up in the workplace. After starting out in the transportation and aviation industries, Ms. McCollam moved onto roles in consumer products, then food organizations. She spent five years outside of the U.S. running a mergers and acquisitions team, and recalled the day she was sent to Asia to negotiate a purchase transaction. Greeting the Asian businessmen at their first meeting she was asked “Why in the world did they send a woman?” Why? “Because we’re here to discuss the purchase price for your business” she responded. Then she simply moved on to the salient conversation. Women must present themselves with confidence, competence and calm.

At every level we must have a career plan. The career plan will change but we must be committed to the goal. Also, find mentors to evaluate those plans, and BE a mentor. Seek people at higher levels, not only for mentorship but also sponsorship! Do not confine yourself to other women – do not create your own glass ceiling! Think of how the next move will look on your resume.

Run into the fire – as this is where the big career moves are possible. This requires recognizing the risks. We need to lead change with courage and determination. We must be decisive and accountable. Women tend to have more difficulty with during times they aren’t popular. We must be resilient. Also leaders must have good judgment even when all the facts aren’t available. Use past experience and make the call! Men do this more easily. Wrong calls are always a part of the process but one must be courageous.

Have managerial courage, understand your personal code of ethics and be able to demonstrate good judgment. Your integrity will be challenged, and if the line gets too close that integrity will be irrecoverable. Hire great people – do not underhire, and do not be afraid to delegate. This is what allows a manager to go to the next level.

Lastly, love what you do! This is really important. Who do you work for? If your boss isn’t willing or able to help you grow, start planning the next move and adjust the career plan to change the outcome.

Next, Liz Mulligan-Ferry of Catalyst Research shared some facts to support the need for diversity and the progress that needs to be made in this area. Liz first highlighted the reasons diversity is important in the workplace: since women are responsible for 70% of purchase decisions, it makes sense for companies to reflect the marketplace; companies with women in leadership are seen as more ethical and philanthropic; diversity facilitates the ability to leverage top talent; and companies exhibiting diversity in the workplace experience increased innovation and improved financial returns. Barriers to advancement for women are encompassed in gender-based stereotypes, unconscious biases and a reliance on mentors to the exclusion of sponsors for moving ahead. Women are seen as less effective in conflict (either too timid or too abrasive, never just right). They’re viewed as competent or likable, but rarely both. And while mentors provide advice and help to navigate corporate politics, one really needs sponsors, with power and clout, to help a person fight and advance to the next level. Sponsors tend to be senior level executives where such relationships are important for facilitating the right developmental opportunities. Critical job experience includes international assignments, P&L responsibility and budget increases of 20% or more.

Strategies for Success:

  1. Learn the unwritten rules of your company (e.g., culture).
  2. Make your accomplishments known. Be visible and let people know what you can do.
  3. Build relationships. Get to know people and let them know you!
  4. Take career risks. (Interestingly, men will apply for a job when they meet about 60% of the qualifications whereas women typically wait until they meet 100%!)
  5. Ask for what you want. Be open if you don’t know what it is, but be ready to ask if you do.
  6. Get feedback for improvement (better gained from a mentor than a sponsor…)
  7. Be a catalyst!

The final segment of the afternoon entailed a panel discussion with Ms. McCollam, Matt Grimes (Wells Capital Management), Laura Moret (Chief Counsel of Piper Jaffray Asset Management), Kathy Rogers (EVP, Business Line Reporting and Planning, US Bancorp) Tammy Schuette (Corporate Controller at TCF Financial) and Mark Simenstad (VP of Fixed Income Funds at Thrivent Financial). While the panelists acknowledged that great progress has been made in this arena, Mr. Grimes and Simenstad indicated that women only account for 10 or 15% of the applicant pool in jobs where they have hired over the past several years. Additionally, women comprise only 15% of the membership of the CFA Society of Minnesota. Speculation as to the reasons for this low representation centered on women’s own misperceptions, around the hours required for the job among other issues. While questions from the audience – ranging from how to take risks to the importance of proactive negotiating, drew multiple opinions from the panel, all agreed that it is increasingly imperative for companies to find ways to be more inclusive in growing their employee bases. Demographics in the U.S. are really changing, and we need a workforce that resembles the customer base. It is a matter of community support, and it’s important for corporations to sponsor a mindset of openness and awareness as to what efforts toward diversity means. Inclusion means that people can be authentic; they can bring their whole selves to work, participate and feel good about themselves in the process.