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The ‘Lifting Global Growth by Investing in Women’ report substantiates BlackRock’s findings, demonstrating that companies with gender-balanced revenue-generating, engineering, and top-paying roles yield superior returns on assets. Firms where middle management reflects women’s representation generate higher risk-adjusted monthly returns. Over the past four years, portfolios would have seen a performance boost of 72 basis points yearly over the MSCI World Index by overweighting companies that promote more women into senior roles.
Furthermore, female-led companies have outperformed male-led ones by an average of one percentage point on the Return on Assets (RoA) measure from 2014 to 2022, despite only 6% of CEOs being women in 2022. Companies fostering a women-friendly culture and supporting longer average maternity leaves would have improved portfolio performance by 1.07 percentage points annually over the Russell 1000 Index in the past four years.
In the startup space, women-owned or managed hedge funds have outperformed the average hedge fund by 10.5% over the last 16 years. Furthermore, women-owned startups have delivered twice as much per dollar invested.
These findings underscore the increasing importance of human capital as a driver of financial performance and investment decisions. BlackRock’s commitment to gender diversity, along with its stewardship over $9.43 trillion in assets and significant stakes in corporations like Apple (NASDAQ:AAPL), Facebook (NASDAQ:META), JP Morgan Chase (NYSE:JPM), and Deutsche Bank, suggest a likely positive impact on its stock performance.
Notably, BlackRock CEO Larry Fink’s recent meeting with Indian Prime Minister Narendra Modi and Mukesh Ambani of Reliance Industries is expected to pave the way for a strategic alliance with Jio Financial Services. This move could further augment BlackRock’s international footprint, reinforcing its position as a potential choice for investment portfolios.
According to InvestingPro data, BlackRock (BLK) boasts an impressive market cap of $96.01B, with a P/E ratio of 17.88, indicating a relatively stable investment. The company has shown resilience and consistent growth, as evidenced by its 13 consecutive years of dividend increases, a key indicator of financial health (InvestingPro Tip 1). Furthermore, BlackRock’s return on invested capital is high, showing the company’s efficiency in generating profits from its investments (InvestingPro Tip 0).
Despite a declining trend in earnings per share (InvestingPro Tip 2), the company’s cash flows are robust enough to cover interest payments (InvestingPro Tip 5), a promising sign of financial stability. This is further supported by the fact that stockholders receive high returns on book equity (InvestingPro Tip 4).
InvestingPro’s comprehensive platform offers more than 8 additional tips for BlackRock, providing an in-depth analysis for potential investors. With this data at your fingertips, you can make informed decisions about your investments.
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