Finnish banks on Monday issued a new index option tied to firms that have women in leading positions because such companies are more profitable, banking officials said.
The option, known as "Top Women," is linked to a basket of shares of 15 companies worldwide, including U.S.-based 3M Co., Avon Products Inc., and Kellogg Co.; British Centrica PLC; Norway's StatoilHydro ASA and Telenor ASA, and TomTom NV of Netherlands.
The share offer, with a minimum investment of 1,000 euros ($1,476), is available until Feb. 15, said Ilkka Pihlaja, product manager at Tapiola Bank.
"There's been a lot of interest in this," Pihlaja said. "Several studies have shown that companies with a mix of women and men on governing boards or management positions fare better than those led only by men."
Last year, research by the U.S. consulting firm McKinsey showed that in Europe only 11 percent of the members of governing boards of listed companies were women, but that those companies performed more efficiently than firms with only male members in leading positions.
Similarly, a study by the Finnish Business and Policy Forum in November showed that a company with a woman as chief executive was 10 percent more profitable than a corresponding company with a male CEO.
"So I think investors can rest assured. Naturally, if the markets weren't so volatile as they are now, there would be even more interest," Pihlaja said.
Finland has one of the world's most female-dominated governments with 12 of the 20 ministers being women and 42 percent of the lawmakers in Parliament. But less than 10 percent of all firms are headed by women.
Only one Finnish firm, Neste Oil Oyj, made it into the index basket of 15 companies.
"The main reason for that it that we wanted a geographical spread," Pihlaja said, "Also, the Finnish share market is quite small really."
The option, offered by Tapiola Bank and Bank of Aland, is to mature on Feb. 7, 2011.
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