The results from our fifth annual diversity challenge are in - revealing where progress is happening and where it's stalled.
This year, we asked 49 fund managers who we work with across our core solutions, to share data on the gender and ethnic diversity of their teams and board members.
By comparing this year’s insights with previous years, we can track how diversity in investment management is evolving.
See the full 2025 gender and race diversity study results here.
Progress? Not quite - but we're still ahead of the industry
For the fourth consecutive year, portfolio manager gender diversity has remained unchanged. While this lack of progress is disappointing, it's worth noting that our fund managers continue to outperform the industry average of 12.5% female vs. 87.5% male (as cited in the 2024 Citywire Alpha Female report). We're proud they're leading the way, even as we push for greater progress.
Shifts in diversity: where change is happening
Our latest study highlights a persistent gap in diversity - women and ethnic minorities remain underrepresented among fund managers. However, we are seeing more diversity among investment analysts, where decision-making responsibilities are not yet in play.
When it comes to gender diversity within funds, some interesting trends and setbacks have come to light in this year's data:
- A concerning setback - this year, there are fewer female-led funds compared to the industry average, making it harder to close the diversity gap among fund managers.
- A positive trend - this year there are fewer all-male managed funds.
- Encouragingly, nearly half of the funds managed by our fund managers have mixed-gender teams - far surpassing the industry norm of just 14%.
Why diversity matters
Research consistently shows that diverse teams drive innovation, creativity, and better business outcomes - and they foster a culture where everyone feels valued.
Looking at the board member gender results below, we can see there’s more work to be done at the decision-making level. Especially as the number of firms with at least one female board member has decreased year on year.
The transparency challenge
One of the biggest hurdles in tracking progress is data availability. Due to privacy regulations, many fund houses are limited in what they can share. Additionally, more respondents are selecting “Prefer not to say/non-binary” in gender reporting.
However, transparency is key to driving change. It’s encouraging to see nearly 70% of fund houses reporting on gender pay gaps, with our results remaining above the industry average.
We’ll keep asking the tough questions, sharing insights, and pushing for meaningful progress. How much progress can we make by next week? Let's find out - together.
#AccelerateAction
Download the full 2025 results
This article is for financial professionals only. Any information contained within is of a general nature and should not be construed as a form of personal recommendation or financial advice. Nor is the information to be considered an offer or solicitation to deal in any financial instrument or to engage in any investment service or activity. Parmenion accepts no duty of care or liability for loss arising from any person acting, or refraining from acting, as a result of any information contained within this article. All investment carries risk. The value of investments, and the income from them, can go down as well as up and investors may get back less than they put in. Past performance is not a reliable indicator of future returns.
