A recent study by Morgan Stanley proves that public companies around the world perform better when there is greater parity among genders in the workplace.  Study after study continues to support the diversity narrative, and I do believe more companies are buying in.

The study looked at corporate policies including pay parity, diversity policies, maternity leave and found a direct correlation between these policies and corporate success.  "Morgan Stanley is gradually factoring the findings into its forecasts for equity returns, alongside other metrics like technicals, earnings revisions and valuations.“

According to Adam Parker, Morgan Stanley’s chief US equity strategist "Ultimately, we’ll be able to observe whether this boosted-up ranking outperforms the ranking we would have had before we did the gender diversity work, and assuming that continues to be the case as has been, then we may just throw out the existing ranking and only have the gender-diversity-boosted framework.”

Within the report, Morgan Stanley found that among stocks, “those with high gender diversity delivered much better risk adjusted returns.”   In comparison, “stocks that rank low on diversity have the highest return volatility and the highest probability of experiencing sharp drawdowns.”

Yes diversity may be the new deciding factor in terms of corporate success, and I for one am all in.

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