Increased scrutiny of diversity claims from asset managers, women-only events and broad-based diversity, equity and inclusion (DEI) initiatives could mean the asset and wealth management industry is ready to move to ‘the next stage’ of harnessing gender equity, according to several senior investment professionals and diversity advocates.
It is undisputed that gender diversity across the industry has improved over the decades, and has continued to follow this trajectory – for the most part – during the past few years. However, when looking at the data alone, that progress seems to be slowing.
According to research from Deloitte, more women have taken C-suite roles in financial services over the past decade than men. In 2012, 12.1% of C-suite positions were held by women. This number has increased incrementally every year and, as at the end of 2023, stood at 18.4%. Deloitte predicts this upward trend to continue but at a slower pace, with 21.8% of C-suite roles projected to be held by women by the end of 2031 (see graph on opposite page).
Similarly, London Stock Exchange research published last year concluded that the percentage of women in managerial roles in financial services rose by an average of 8.2% each year between 2016 and 2021, compared with 6.3% for men. However, the employment gap between men and women has fallen consistently every year since then.
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And, data from EY’s European Financial Services Boardroom Monitor shows that appointments of female board directors to the UK’s largest financial services firms declined 28 percentage points in 2023: just 33% of all appointments last year were of female directors, compared with 61% in 2022.
This is not to lambast an industry that is clearly making good progress, with numerous initiatives designed to increase gender parity, as well as the number of women both entering and remaining within the industry.
Diane Earnshaw, research and consulting director at Square Mile, tells Portfolio Adviser: “I have been in the industry over 25 years. While a lot more can be done, there are more woman leaders now and more young women entering the industry than when I began my career.
“Great initiatives like, GAIN (Girls Are Investors) exist now and are supported by a strong network of females in the industry committed to supporting other women. They work directly in schools, sixth-form colleges and universities to help overcome stereotypes and encourage greater diversity.”
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Camilla Esmund, public relations manager at Interactive Investor, adds: “What is encouraging – but what I’d love to see more of – within the investment industry is the growth of grassroots activity to help encourage more women to not only invest but to be aware of the breadth of opportunity within the world of investment.
“The staggering gender investment gap is well documented and researched, but it is fantastic to see the emergence and growth of practical ways to actually address it.”
Read the rest of this article in the March issue of Portfolio Adviser magazine
