Progress and Challenges in Female Representation in Asset Management
Despite ongoing efforts to promote gender equality, advancements in female representation within the asset management industry have been slow. A recent report by Citywire highlights that women constitute only 13% of fund managers in the UK, reflecting a marginal increase from 12% last year and a slight rise from 10% since the study commenced a decade ago.
Global Comparisons
This trend mirrors global findings, where women make up only 12.9% of over 18,400 money managers analyzed worldwide, a modest increase from 12.5% last year and a significant rise from 10.3% in 2016.
Insights from Industry Leaders
Sophie Downes, co-author of the report, expressed concerns over the sluggish pace of improvement, stating, “We’ve heard a lot about diversity initiatives in investment firms, but progress on the overall numbers has been grindingly slow.”
Mixed-Gender Teams and Asset Growth
While the total assets managed by women globally have tripled over the past decade to £4 trillion, this growth is largely attributed to the rise in mixed-gender teams, which now manage 14.9% of the funds studied, a notable increase from 6.7% in previous years. Baroness Morrissey, former CEO of Newton Asset Management, emphasized the advantages of these teams, citing evidence that they tend to adopt a more measured approach to risk. “We know that men and women have slightly complementary approaches to various things, including risk,” she stated.
Disparities in Fund Management
Despite the positive trend in mixed-gender teams, nearly 80% of all funds are still led by men, managing £11.7 trillion in assets. In stark contrast, women-led funds account for just £548 billion. Furthermore, the average fund size for male-only teams stands at £535 million, significantly larger than the £362 million for female-led teams.
Challenges in New Fund Appointments
The allocation of newly launched funds also shows a troubling pattern, with less than 3% appointed to sole female managers in 2023—a decline from 5% last year—and no new funds designated to female-only teams. Such roles are critical for career advancement as they come with enhanced visibility and support from corporate marketing efforts.
Turnover Rates and Retention Issues
Retention of female portfolio managers remains a significant challenge. According to the report, turnover rates for women have surged to 44%, compared to 30% for their male counterparts, contradicting expectations that the adoption of flexible working arrangements post-pandemic would assist women in retaining their positions.
Gender Representation Across Asset Classes
An analysis of asset classes reveals pronounced disparities in gender representation. Sectors such as commodities and alternative assets, including private equity, maintain the lowest female representation at 8.2% and 5.7%, respectively. On the other hand, female bond fund managers make up only 13.6% of that segment.
Shifting Focus on Workplace Culture
Karis Stander, director of culture, talent, and inclusion at the UK’s Investment Association, stressed the importance of moving beyond mere data tracking to foster a more inclusive culture in asset management firms. “Should reaching 50/50 be the goal? I’m less interested in that and more interested in whether women feel they can enter the industry and access the range of jobs available,” she noted.
Conclusion
The report reviewed over 29,000 active funds worth a collective $16 trillion, revealing both progress and ongoing challenges in achieving gender parity within the asset management sector. Despite initiatives aimed at increasing diversity, the industry must continue to address retention and representation to create a more balanced and inclusive landscape.
