The asset management industry has been accused of only “slowing down” on gender diversity, with women still unchanged accounting for just 13% of UK Fund managers-despite several high-profile initiatives in the last decade.
According to the latest Citywire Alpha Women's Report, the UK figure reflects the global average. Of the over 18,400 money managers worldwide, only 12.9% are women, compared to 12.5% last year and 10.3% in 2016.
Sophie Downs, co-written by the report, said: “We have heard a lot about the diversity initiative in investment firms, but have been slower than grinding progress on overall numbers.”
The full value of the assets managed by women has been tripled by £ 4 trillion in the last ten years, but this growth reflects the growth in mixed-linga teams, now managing about 15% of the money, which is above 6.7% only a decade ago.
Data suggests that these mixed team often improve their peers on risk-time measures. Analysis shows that they have provided the lowest instability in four of the last five years, supporting long-held arguments that gender-class teams bring more balanced risk management.
Former Chief Executive Officer of Newton Investment Management, Bairosale Helena Morrisi said: “We know that men and women have a complementary approach to risk. We think differently, and have better results.”
Despite the evidence, about 80% of the funds are still specially managed by men, overseeing £ 11.7 trillion property. In contrast, funds run only by women or all women's teams, only £ 548 billion. The inequality also extends to the size of the fund: the average male-cavalry funds control £ 535 million, while women by women compared to £ 362 million.
The new launches are very diagonally towards men. Only 3% of the newly launched funds of this year were handed over to the only female managers, which was below 5% last year, and no women teams only. These plum assignments are seen as an important career accelerator, increasing concerns that women are systematically ignored for high-profile opportunities.
The report also highlighted a retention interval. Flexible working post-pandemic was expected to benefit women in financial services, but the turnover among female portfolio managers is significantly higher than men. The study found 44% turnover for women compared to 30% for men.
Representation also varies rapidly by the asset class. The lowest level of women fund managers is seen in objects and alternative assets at 8.2% and 5.7% respectively, while the bond fund is slightly better at only 13.6%.
Conclusions come in the time of widespread global pushbacks against diversity, equity and inclusion (DEI) initiative. In the US, companies including Goldman Sachs and Deloite withdrew DEI policies, while the UK Financial Conduction Authority confirmed earlier this year that it would not impose new rules on diversity and inclusion.
Sonia Jenkins, an officer of the chief people of schroders, said that Baikalash forced employers to reassure their vision: “It is very easy to get stuck in Dei, as it is in the form of a crazy thing that is integral to business. The more data points we have, the more the business supports, the more disciplines we have, the greater the business matter.”
Industry leaders emphasize that while regulatory framing shifts may occur, there is a commitment to diversity. Karis Stander, director of culture, talent and inclusion in the UK Investment Association, said: “Should I reach 50/50? I am less interested in it and I am more interested in it and women feel that they can enter the industry and use rich tapestry of roles. Some firms are less as 'diversification'.
For campaigners, however, headline numbers are harmful. After the goals and initiatives of a decade, having women from 10% to 13% of fund managers from only 10% to 13% shows that real structural changes in asset management have barely begun.
Jamie young
Jamie is a senior reporter in Business Matters, who is bringing more than a decade experience in UK SME business reporting. Jamie holds a degree in business administration and regularly participates in industry conferences and workshops. When not reporting the latest commercial developments, Jamie has emotional about advising journalists and entrepreneurs to motivate the next generation business leaders.