Over the past decade, gender lens investing (GLI) has evolved from a niche concept into a recognized strategy that aligns financial returns with the advancement of gender equality. Despite this progress, GLI still represents a small fraction of the broader asset management industry. To bridge this gap and foster meaningful change, asset managers must adopt comprehensive strategies that promote inclusivity throughout the investment process. Drawing inspiration from successful models and recent developments, here are key approaches to building more equitable investment portfolios:

1. Proactive Sourcing and Accessibility

• Enhance Accessibility: Ensure that contact information is publicly available or provide dedicated channels for pitch submissions. This practice enables underrepresented founders, who may lack extensive investor networks, to access capital more readily.

• Diversify Sourcing Channels: Engage with networks and platforms that support women entrepreneurs, such as WeRaise in Pakistan and WeTech in Nigeria. Collaborating with these organizations can uncover diverse deal flows and enrich the investment pipeline.

2. Implementing Inclusive Investment Criteria

• Adopt Gender-Inclusive Metrics: Incorporate criteria that prioritize investments in women-owned or women-led enterprises. This approach not only addresses gender disparities but also aligns with findings that diverse leadership teams often drive better financial performance.

• Align with Global Standards: Utilize frameworks like the 2X Challenge, which sets benchmarks for gender-smart investments, to guide decision-making and ensure meaningful impact.

3. Providing Tailored Support and Resources

• Offer Customized Mentorship: Recognize the unique challenges faced by women entrepreneurs by providing mentorship programs that address specific needs, thereby enhancing their capacity to scale and succeed.

• Facilitate Access to Capital: Beyond initial investments, assist portfolio companies in securing additional funding through introductions to potential co-investors and guidance on navigating the fundraising landscape.

4. Measuring and Reporting Impact

• Establish Clear Metrics: Develop and implement metrics to assess the impact of gender-focused investments, such as the proportion of women in leadership roles or improvements in workplace equity.

• Ensure Transparency: Regularly publish reports detailing both the financial performance and social impact of investments, thereby building trust and demonstrating commitment to gender equity.

5. Fostering Internal Diversity

• Promote Diverse Leadership: Cultivate a diverse team within investment firms, as varied perspectives can enhance decision-making and lead to more equitable investment choices.

• Implement Inclusive Policies: Adopt internal policies that support diversity and inclusion, such as equitable parental leave and flexible working arrangements, to attract and retain diverse talent.

6. Engaging in Continuous Learning and Collaboration

• Participate in Industry Initiatives: Join collaborative efforts like the Gender Finance Collaborative, which brings together institutions committed to advancing gender lens investing.

• Share Best Practices: Engage with peers to exchange insights and strategies, fostering a community dedicated to continuous improvement in gender-inclusive investing.

By integrating these strategies, asset managers can play a pivotal role in advancing gender equity, leading to more inclusive economic growth and enhanced financial performance.