In our third annual diversity challenge, we asked 50 of the fund managers we work with across our core solutions for data on the gender diversity of their staff. This year, for the first time, we’ve broadened the study to include ethnicity and board level data too. Here’s what we found in 2023:
Some good news
On average, our fund managers are still doing better than the industry standard (Citywire Alpha Female 2022 report) when it comes to employing female portfolio managers. But still, progress is slow.
Download the full 2023 results
Our 2023 study shows that women and people from ethnically diverse backgrounds are better represented among investment analysts than portfolio managers. This means they’re more likely to be analysing companies to invest in, but not necessarily making the final decisions about which investments to make and overseeing the overall portfolio.
When it comes to new hires, this year there has been an equal number of women and men hired as analysts, and our data shows a really encouraging trend over the years. This time around, our managers have less than 1% of total funds they offer managed by a lead female portfolio manager, which is broadly in line with the industry average. But positively, there are about half of funds offered by our fund managers with mixed-gender portfolio management teams - way above the average (Citywire Alpha Female 2022 report).
Overall, we’re encouraged by the progress we've seen in some areas, but we know there's still a long way to go. It’s important to remember that statistics are biased towards larger fund managers, with the resources to produce these reports and share their results.
Increased transparency is a crucial first step to creating change. We will keep asking the questions and sharing the results with our fund managers to show them how they stack up against their peers and highlight where they’re leading or lagging. In the works of Kofi Annan, “Knowledge is power. Information is liberating. Education is the premise of progress, in every society.”
By embracing diversity, we believe businesses can tap into a broader range of perspectives, ideas, and experiences that can lead to better decision-making, increased innovation, and improved performance.
Download the full 2023 results
In summary, as per last year we see cause for optimism. The gender balance for new hires in 2022, particularly in portfolio management, is excellent to see, as is the increasing number of mixed portfolio management teams.
We will, of course, continue to ask these questions in the hope that we’ll be reporting further progress next year. #BreakTheBias
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