Welcome to our #144 weekly newsletter.
“For women taking control of their financial future”
-Jana Hlistova
From The Purse
In this week’s newsletter, we highlight the best women-run (US) companies to own according to Morningstar. Few public companies are led by female CEOs, but in many cases they outperform.
Don’t forget to listen to The Purse Podcast with Barbara Clarke. Barbara is the Co-Founder of The Impact Seat LLC and Chair of the Board of The Impact Seat Foundation.
As one of the top U.S. individual investors in women-led innovative tech startups, Barbara’s iconic investment strategy has inspired many others around the world. Please enjoy!
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You can review the news in brief so you stay on top of global financial, economic and investing trends.
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And we would like to wish you Happy Holidays and all of the best for the New Year, as this is the last newsletter for 2022.
Thank you for being on this journey with us.
We’re excited about 2023 as we continue on our mission to change the conversation for women about money and investing.
And to support female investors, in not just growing your wealth, but in helping you build the world you want to see.
See you in early January 2023!
Warmest wishes,
Jana
The best women-run (US) companies to own in 2023
Few public companies are led by female CEOs, but in many cases they outperform.
Women still hold a disproportionately small number of CEO roles among companies. In the US, only 8% of the companies on Morningstar’s list of the Best Companies to Own are led by female CEOs. And in the UK, only 9% of women are CEOs in the FTSE 100, according to a study by Robert Half.
Based on data, female CEOs and female Portfolio Managers continue to outperform. Why? These female leaders face more barriers in the workplace, and the women who succeed tend to be exceptional leaders.
We know that there are many benefits associated with higher levels of gender diversity in corporate leadership.
These benefits include:
superior performance
better operational metrics
improved risk and fraud management
improve decision-making (and many other areas).
Owning company stock of women-led companies…
… can diversify an investment portfolio and generate outperformance. As might buying an index or an ETF of female-led public companies.
Hypatia Women CEO Index (US) was launched in November of this year for this reason and Pax Ellevate Global Women’s Leadership Fund (US) is a top performing gender lens fund.
Morningstar has highlighted female CEO (US) companies to own in 2023.
They have earned their spot on the list by having carved out wide Morningstar Economic Moat Ratings and having made smart decisions with their capital:
What next? (Re) listen to The Purse Podcast:
#58: UK female entrepreneurship and The Gender Index with Jill Pay
#69: Women as decision makers and asset allocators with Patience Marime-Ball and Ruth Shaber MD
News in Brief
Financial news
The Dow Jones closes out its worst day in three months, falls more than 700 points as recession fears grow following weak data in the US and China. Shockingly hawkish the European Central Bank (ECB) did not help either.
US Federal Reserve’s Jay Powell: no rate cuts until confident inflation is moving toward 2%.
The Fed downshifts to 50 basis point hike. Ups key rate to 4.5%, which is the highest since 2007. Projected rates would end next year at 5.1%, according to their median forecast, before being cut to 4.1% in 2024 - higher level than prev indicated. Investors prior to decision bet rates would reach ~4.8% in May.
ECB slows tightening pace. Hikes rate by 50 basis points. Main refi rate now at 2.5%, the highest since 2009. ECB says QT will begin in March at a measured, predictable pace. ECB says APP portfolio to fall by average €15bn a month in 2Q.
Bank of England (BoE) raises key rate by 50 basis points (0.5%) as expected to 3.5%, highest since Oct 2008, following Fed in slowing pace of increases as inflation edges lower. 2 BoE members - Swati Dhingra & Silvana Tenreyro - voted in favour of holding rates at 3%. Catherine Mann called for firmer 75 basis point increase.
Crypto: bitcoin, ethereum, DeFi & NFTs
Bitcoin slips, struggles to hold $17,000 and ether sold off more severely, dropping 4.8% to $1,215. Cryptocurrencies and crypto-related stocks were down in line with broader financial markets after a busy week of economic data and, of course, the arrest and charging of Sam Bankman-Fried.
FTX founder Sam Bankman-Fried will no longer contest extradition to the United States, where he is facing criminal fraud charges, according to Reuters. The former CEO is charged with committing or conspiring to commit fraud on FTX’s customers and lenders plus counts of money laundering.
US prosecutors probing Bankman-Fried’s political donations. Federal prosecutors requested information about donations made to Democrats and Republicans by the former FTX CEO and some of his colleagues, according to the New York Times.
Yuga Labs advances in lawsuit accusing artist of copying Bored Ape NFTs. U.S. District Court of Central California denied a motion in favour of Bored Ape NFT creators in their lawsuit against artist Ryder Ripps and Jeremy Cahen.
The Purse Podcast
We cover the following in our conversation:
Women's relationship with money
Why Barbara decided to start investing in female founder startups
How she started on her journey as an angel investor
How she invests in early stage businesses
The value add that female investors can provide
Barbara's favourite startup investment
Startup lessons learned
Why we need more female investors
The role that wealth managers have to play
How women can start on their own journey to become angel investors
And more.
Please enjoy! Listen on Apple Podcasts and Spotify+
Coffee Break? Read This
We’d love to hear from you. Get in touch with Jana via the The Purse website or tweet @jointhepurse and janicka.
The Purse Ltd. Copyright 2022 & All Rights Reserved.
The Purse provides content for informational purposes only, we do not recommend products or services or provide investment advice. Please do your own research or speak to a financial adviser.
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