The Diversity Project has set out new targets to shake up the investment industry, including aiming for women to make up 20% of fund managers within five years and for at least 80% of interns and graduates to come from state schools.
To mark its fifth anniversary, the Diversity Project is focusing on the three dimensions of diversity – ethnic minorities, gender and socio-economic backgrounds – to tackle inequalities within the finance industry.
Diversity Project chair Helena Morrissey (pictured) said: “This past year we’ve experienced the biggest shake up imaginable in all aspects of our lives. It’s not the way we wanted to catalyse a step-change, but we are seizing the moment to refocus our efforts to accelerate progress towards a more inclusive culture and greater diversity of talent.”
Targets to increase diversity
Among its goals, the Diversity Project is targeting 20% of all fund managers to be women in the next five years, a boost from the 14% recorded by Morningstar in 2019, a figure which was the same as in 2000.
It is also seeking to reduce the gender pay gap by one third from its 2019 figures, as well as to achieve 50/50 male/female graduate and school leaver recruitment.
The Diversity Project is similarly encouraging the equal take-up of stocks and shares Isas by female and male customers to address gender inequalities.
Its socio-economic targets include requiring all members to collect socio-economic data for both entry-level and existing staff, and to track promotions.
Support for graduate programmes
A report by the FCA, published in December, found that people from lower socio-economic backgrounds took 25% longer to progress in their financial services job. It also found that 51% of respondents to its survey of 7,780 people from the industry were from higher socio-economic backgrounds, compared with 33% of the wider UK workforce.
To combat this, the Diversity Project will also require all member firms to support one or more graduate/school leaver recruitment programmes focused on socio-economic diversity and it will require at least 80% of interns and graduates to have attended state school for their secondary education.
In terms of improving ethnic diversity, the Diversity Project is targeting a 90% ethnicity disclosure rate within two years to provide a basis for additional targets to be set.
Fidelity CEO wants an industry where everyone can succeed and thrive
Fidelity International CEO Anne Richards said: “There is now broad agreement on the robust business case for diversity and inclusion because of the huge benefits they bring to our organisations in terms of innovation, better problem solving and more engaged employees who value the stronger sense of fairness.”
She added: “We celebrate our progress, knowing that there is still more to do, and look forward to continuing to work together to create an industry where everyone feels they can succeed and thrive.”
The Diversity Project was founded in 2016 and includes 80 firms, 50 partner organisations and 400 people committed to the project, including 30 CEOs who form the Diversity Project’s Advisory Council.
Last month it collaborated with other organisations such as #Talkaboutblack and the CFA to launch a university project aimed at creating a pipeline of diverse talent for the sector.
Morrissey said: “Diversity and inclusion in the investment and savings industry has come a long way and I’m hugely proud of all that the Diversity Project has achieved from the ground-breaking work of #Talkaboutblack supporting after-school clubs for disadvantaged and ethnically-diverse students to the successful upReach programme, which has seen firms come together to increase social mobility through their early careers recruitment via the Investment Industry Springboard and the work of LGBTQ+ role models and allies through-out the industry, among many other initiatives.”
