Despite some encouraging signs in specific regions of the globe, women’s participation in the investment management industry has remained stagnant for more than two decades, according to new research today on gender diversity from Morningstar and the CFA Institute.
Globally, the 14% participation rate by women mutual fund managers is unchanged since 2000, said Laura Lutton, head of asset management solutions at Morningstar, who spoke at the ”DE&I in the Investment Management Industry” virtual executive roundtable.
There are some bright spots when it comes to diversity, equity and the inclusion of women. For instance, the representation of women in parts of Asia is north of 20% and is approaching 30% in China. In the U.S. and U.K., however, the rate is below the global average, Lutton said.
But there is a promising trend in the new data findings: more women today are in the investment management talent pipeline, seeking professional credentials necessary to be competitive in the investment management industry, said Sarah Maynard, the CFA Institute’s global head of external inclusion and diversity strategies and programs, who spoke at the roundtable hosted by the Investment Adviser Association, Morningstar and the Women Business Collaborative.
Between 2015 and 2020, participation by women in the chartered financial analyst program grew from 32% to 41%. In real numbers, the amount of women candidates for the CFA designation doubled over the same five-year period, from 70,000 to 140,000, Maynard said.
The roundtable also featured three leading asset management CEOs who oversee more than $4.5 trillion in assets and have more than 85 years of combined experience. The executives laid out their strategies for encouraging more women to join and grow with the investment management industry.
“If you have an underutilized group of very talented individuals, you have to look at it as an incredible investment opportunity,” said Franklin Templeton president and CEO Jenny Johnson.
“Firms must look critically at their practices to see what they are doing to build a pipeline and ensure advancement opportunities for women,” she added. “We must advocate for groups that have been historically underrepresented to start joining investment management firms and to envision themselves in our industry in the future.”
According to New York Life Investment Management CEO Yie-Hsin Hung, the hiring, training and promotion of women must become a carefully coordinated priority at companies.
“You have to resource this effort like any major strategic initiative with commitment from the top and embed diversity and inclusion into every step of our processes around talent, in interviews and [with] promotions to increase the likelihood of achieving the outcome we all desire,” Hung said.
“As women leaders, there’s also an opportunity for us to bring more women into our industry by sharing our stories with the next generation and better connecting what we do to making a difference in peoples’ lives,” she added.
Russell Investments CEO Michelle Seitz said hiring women isn’t enough because advancement is critical to retaining and growing female talent.
“We have the women taking the exams, graduating from esteemed universities and applying for jobs. We need to make sure that once they're in our pipeline we provide opportunities to get them on track for promotions and leadership roles. We need to attract and retain people once they’re in the field,” she said.