Skip to main content
MENU
Subscribe
  • Login
  • My Account
  • Logout
  • Register For Free
  • Subscribe
  • Topics
    • Alternatives
    • Artificial Intelligence
    • CIOs
    • Consultants
    • Defined Contribution
    • ESG
    • Face to Face
    • Hedge Funds
    • Industry Voices
    • Investing
    • Money Management
    • Partner Content
    • Private Credit
    • Pension Funds
    • Private Equity
    • Real Estate
    • Regulation
    • Special Reports
    • Washington
    • White Papers
  • International
    • U.K.
    • Canada
    • Europe
    • Asia
    • Australia - New Zealand
    • Middle East
    • Latin America
    • Africa
  • Rankings & Awards
    • 1,000 Largest Retirement Plans
    • Top-Performing Managers
    • Largest Money Managers
    • DC Money Managers
    • DC Record Keepers
    • Largest Hedge Fund Managers
    • World's Largest Retirement Funds
    • Best Places to Work in Money Management
    • Excellence & Innovation Awards
    • WPS Innovation Awards
    • Influential Women in Institutional Investing 2024
    • Eddy Awards
  • Resource Guides
    • Active Thematic Global Equities
    • Retirement Income
    • Fixed Income
    • Pension Risk Transfer
    • Pooled Employer Plans (PEPs)
  • ETFs
    • Latest ETF News
    • Fund Screener
    • Education Center
    • Equities
    • Fixed Income
    • Commodities
    • Actively Managed
    • Alternatives
    • ESG Rated
  • ESG
    • Latest ESG News
    • The Institutional Investor’s Guide to ESG Investing
    • ESG Sustainability - Gaining Momentum
    • ESG Investing | Industry Brief
    • Innovation in ESG Investing
    • ESG Rated ETFs
    • Divestment Database
  • Defined Contribution
    • Latest DC News
    • The Plan Sponsor's Guide to Retirement Income
    • DC Money Manager Rankings
    • DC Record Keeper Rankings
    • Innovations in DC
    • DC Plan Design: Improving Participant Outcomes
  • Searches & Hires
    • Latest Searches & Hires News
    • Searches & Hires Database
    • RFPs
  • Research Center
    • The P&I Research Center
    • Earnings Tracker
    • Endowment Returns Tracker
    • Corporate Pension Contribution Tracker
    • Pension Fund Returns Tracker
    • Pension Risk Transfer Database
  • Careers
  • Events
    • View All Conferences
    • View All Webinars
  • Print
Breadcrumb
  1. Home
  2. ASSET OWNERS
April 30, 2018 01:00 AM

Asset owners pressing money managers for their diversity data

Arleen Jacobius
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print
    Keeping women in the workforce is 'very important' to National Employment Savings Trust, Diandra Soobiah said.

    Asset owners agree that gender diversity is a goal for their staffs and the staffs of their money managers, with some pressing managers to provide reasons for their lack of female employees.

    Aoifinn Devitt, chief investment officer of the $2.6 billion Chicago Policemen's Annuity & Benefit Fund, said the pension fund asks managers to provide information on the numbers of minority and female executives they employ.

    Asking for such information implicitly sends a message to money managers that diversity is valued, Ms. Devitt said. The pension fund also invests with emerging managers, many of which are owned by female and minority executives.

    One of the pension fund's board members is very vocal, and asks money managers about the percentage of women working at the firms, she said.

    Institutional investors have a choice and "can vote with their feet," Ms. Devitt said. They can choose not to invest with a manager and give the manager feedback that its lack of diversity was a consideration, she added.

    Some asset owners say disclosure on gender diversity — including the U.K.'s new requirement that companies employing more than 250 disclose the difference in what male and female employees earn — can help induce change in behavior.

    "For us, keeping women in the workforce is very important," said Diandra Soobiah, head of responsible investment at the £2 billion ($2.8 billion) National Employment Savings Trust, London. "We monitor if opportunities for them to be involved are being created and if (managers) are increasing their influence over time."

    The most male-dominated sector in money management is real estate, she noted.

    "But one of our managers, SEGRO (PLC), surprised us because their chairman was very cognizant of the diversity issue," Ms. Soobiah said. "They are actually pretty good at bringing women from junior to more senior roles. But we found they are just not very good at reporting it."

    Some institutional investors say investing in emerging managers is a way of boosting representation of women investment professionals in their portfolios.

    Officials in the New York City Office of the Comptroller, Bureau of Asset Management, which manages the $194 billion New York City Retirement Systems, "spend a lot of time to invest in women- and minority-owned firms," said Neil Messing, head of hedge funds, speaking on a panel at the Pension Bridge conference in San Francisco this month.

    "It's a part of every asset class," Mr. Messing said.

    ​

    One of the largest portfolios

    Indeed, the five New York City pension funds that make up the systems have one of the largest portfolios of women- and minority-owned money managers and have $11 billion invested with these firms, said Scott C. Evans, deputy comptroller, asset management and CIO, speaking on a separate Pension Bridge conference panel.

    In 2015, New York City pension plans included diversity as a criterion in manager evaluation and selection by systematically asking current and prospective managers about the diversity of their investment professionals. Other asset owners now are asking managers about the diversity of their investment teams.

    In a move to lift the profile of women in the industry, Mr. Messing added he will not participate on a panel unless there is also a female or minority executive involved. The panel he spoke on had two female members.

    The Sacramento-based California Public Employees' Retirement System makes note of the importance of diversity among pension staff and at money managers in its investment beliefs, which form the basis of strategic management of its $351.5 billion portfolio.

    Megan White, spokeswoman, wrote in an email that CalPERS does not have a policy solely focused on money manager diversity but said "most of the work we do addresses the importance of diversity and inclusion in general."

    Two years ago, CalPERS' investment office adopted a Diversity & Inclusion 2020 Plan as part of its fundamental belief that diversity, and inclusive cultures that promote diversity, are vital to improving the performance of its organization as well as the business markets in which the fund invests, according to the plan documents.

    The plan covers managers as well as corporate boards and Cal- PERS' staff. An emerging manager program and an outreach and engagement initiative falls under the plan.

    For example, CalPERS plans to commit up to $4 billion to emerging managers, according to its emerging manager five-year plan dated Jan. 1.

    CalPERS also is leading by example. It has women in senior roles, including Elisabeth Bourqui, CalPERS' new chief operating investment officer; Beth Richtman, recently hired as managing investment director of sustainable investments; and Sarah Corr, interim managing investment director of private equity.

    According to CalPERS' latest diversity report released in February, 58% of the system's workforce is female. Some 60% of team leaders are female, the report noted.

    Mansco Perry III, executive director and chief investment officer of the $64.1 billion Minnesota State Board of Investment, St. Paul, said that while his staff is fairly diverse, the pension plan's managers "are a bit more disappointing." (Mr. Perry was speaking on the same Pension Bridge panel as Mr. Evans.)

    "We see a lot of women, but unfortunately, most are relegated to client services or sales roles," Mr. Perry said. "I look forward to the day of greater diversity, not only on corporate boards but also in money managers."

    Paulina Pielichata contributed to this article.

    Related Articles
    A long way to go in manager diversity
    Alternatives titans work to expand role of women
    U.K. disclosure reports put spotlight on compensation
    A long way to go in manager diversity
    Trade groups take steps to bring more women into money management
    Alternatives titans work to expand role of women
    U.K. disclosure reports put spotlight on compensation
    Time for real diversity in asset management
    U.S. Conference of Mayors votes to support Diverse Asset Managers Initiative
    TPG scolded for 'stunning' lack of diversity by pension fund official
    Recommended for You
    A globe on a desk next to a laptop.
    Institutions eke out positive returns during volatile Q1 — Wilshire TUCS
    Northern_Trust_Universe_1550_i.jpg
    Northern Trust universe posts 0.7% median return for Q1
    Anca Drexler
    Building Ontario Fund chooses CIO from OMERS
    Sponsored
    White Papers
    The State of Lifetime Income Report
    The Next Wave of LDI Evolution
    Retirement security to future income wins, TIAA brings you the latest financial…
    U.S. Public Funds Top Performers: Q2 2024
    Generative AI Investing: Opportunities at a Key Tech Inflection Point
    Research for Institutional Money Management: Advancing Physical Risk Modelling,…
    View More
    Sponsored Content
    Partner Content
    The Industrialization of ESG Investment
    For institutional investors, ETFs can make meeting liquidity needs easier
    Gold: the most effective commodity investment
    2021 Investment Outlook | Investing Beyond the Pandemic: A Reset for Portfolios
    Ten ways retirement plan professionals add value to plan sponsors
    Gold: an efficient hedge
    View More
    E-MAIL NEWSLETTERS

    Sign up and get the best of News delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    Subscribe Today
    October 23, 2023 page one

    Get access to the news, research and analysis of events affecting the retirement and institutional money management businesses from a worldwide network of reporters and editors.

    Subscribe
    Connect With Us
    • RSS
    • Twitter
    • Facebook
    • LinkedIn

    Our Mission

    To consistently deliver news, research and analysis to the executives who manage the flow of funds in the institutional investment market.

    About Us

    Main Office
    685 Third Avenue
    Tenth Floor
    New York, NY 10017-4036

    Chicago Office
    130 E. Randolph St.
    Suite 3200
    Chicago, IL 60601

    Contact Us

    Careers at Crain

    About Pensions & Investments

     

    Advertising
    • Media Kit
    • P&I Custom Content
    • P&I Careers | Post a Job
    • Reprints & Permissions
    Resources
    • Subscribe
    • Newsletters
    • FAQ
    • P&I Research Center
    • Site map
    • Staff Directory
    Legal
    • Privacy Policy
    • Terms and Conditions
    • Privacy Request
    Pensions & Investments
    Copyright © 1996-2025. Crain Communications, Inc. All Rights Reserved.
    • Topics
      • Alternatives
      • Artificial Intelligence
      • CIOs
      • Consultants
      • Defined Contribution
      • ESG
      • Face to Face
      • Hedge Funds
      • Industry Voices
      • Investing
      • Money Management
      • Partner Content
      • Private Credit
      • Pension Funds
      • Private Equity
      • Real Estate
      • Regulation
      • Special Reports
      • Washington
      • White Papers
    • International
      • U.K.
      • Canada
      • Europe
      • Asia
      • Australia - New Zealand
      • Middle East
      • Latin America
      • Africa
    • Rankings & Awards
      • 1,000 Largest Retirement Plans
      • Top-Performing Managers
      • Largest Money Managers
      • DC Money Managers
      • DC Record Keepers
      • Largest Hedge Fund Managers
      • World's Largest Retirement Funds
      • Best Places to Work in Money Management
      • Excellence & Innovation Awards
      • WPS Innovation Awards
      • Influential Women in Institutional Investing 2024
      • Eddy Awards
    • Resource Guides
      • Active Thematic Global Equities
      • Retirement Income
      • Fixed Income
      • Pension Risk Transfer
      • Pooled Employer Plans (PEPs)
    • ETFs
      • Latest ETF News
      • Fund Screener
      • Education Center
      • Equities
      • Fixed Income
      • Commodities
      • Actively Managed
      • Alternatives
      • ESG Rated
    • ESG
      • Latest ESG News
      • The Institutional Investor’s Guide to ESG Investing
      • ESG Sustainability - Gaining Momentum
      • ESG Investing | Industry Brief
      • Innovation in ESG Investing
      • ESG Rated ETFs
      • Divestment Database
    • Defined Contribution
      • Latest DC News
      • The Plan Sponsor's Guide to Retirement Income
      • DC Money Manager Rankings
      • DC Record Keeper Rankings
      • Innovations in DC
      • DC Plan Design: Improving Participant Outcomes
    • Searches & Hires
      • Latest Searches & Hires News
      • Searches & Hires Database
      • RFPs
    • Research Center
      • The P&I Research Center
      • Earnings Tracker
      • Endowment Returns Tracker
      • Corporate Pension Contribution Tracker
      • Pension Fund Returns Tracker
      • Pension Risk Transfer Database
    • Careers
    • Events
      • View All Conferences
      • View All Webinars
    • Print