As diversity, equity and inclusion comes under pressure from politicians and business leaders, those working in institutional asset management to advance DEI could say they’re going backward.
“Spoiler alert: Yes, we are. In this moment, we are,” said Michelle Thompson-Dolberry, chief DEI officer at MFS Investment Management.
Representing the $624.1 billion investment firm, she is one leader who opened up about the state of diversity in the wealth and asset management industry at the Nicsa Fearless Leadership Symposium in New York on June 12.
As these investment professionals work to advance DEI, 28 states in the U.S. have either introduced or passed anti-DEI laws, according to a recent Seramount report.
“It’s almost disingenuous to say that it’s not really difficult to be doing this work in this moment, but (it’s) certainly never been a more important time,” she added.
Efforts to promote DEI ramped up amid the racial awakening following the killing of George Floyd in May 2020. In the ensuing years, DEI in the U.S. has become polarized and political, said Omar Aguilar, the CEO and chief investment officer at Schwab Asset Management.
When he started in the industry nearly 30 years ago, “there was no concept of the word diversity (or) anything that had to do with that,” so “where we are today, just by having this discussion, we have made progress,” he added.
As head of the $1.2 trillion investment management unit of Charles Schwab, Aguilar continues to push for diversity. Originally from Mexico, he wants to see more Latinos, like his three daughters, in the workforce.
“It is very important — call me selfish — for me to continue to see the evolution because when they get out of school, they need to be seen as potential opportunities to just show the value they can bring for that diverse component,” he added.
Meeting with younger professionals
As their workforce ages, investment managers such as Fidelity Investments are hiring from Generation Z, which is more diverse ethnically and racially in comparison to other age groups.
Chief Operating Officer Bob Adams said the $5.3 trillion investment firm is driving its diversity and inclusion efforts significantly “in terms of bringing in new talent and younger professionals for what I believe are positive in the right reasons.”
“There’s just a ton to learn from these folks,” he added. “From my perspective, I absolutely know they see the world differently than I do for so many reasons … they are more reflective of what’s going on in society today.”
Recruiting efforts should be “specifically targeted at achieving a diverse set of candidates in your organization, whether that’s through internships (or) new professional employee programs,” Adams said. Fidelity looks at regions that are geographically diverse. The firm has established a strong relationship with the University of North Texas, Denton, and recruits from its diverse student body.
It's critically important to meet with younger professionals for feedback.
“There is a two-way street element to this” the COO said, in which he attempts to learn from them and equally hopes “that they are attempting to learn from” him.
If managers want employees to continue to succeed in certain roles in the coming years, they have to develop their talent, said Erika Irish Brown, chief DEI officer and global head of talent at Citigroup.
Succession planning doesn’t guarantee a potential successor, but rather trains someone to become a candidate for a role, she added.
“You want them to be a ready-now candidate for the role, so you have to invest in them,” Irish Brown said. “That’s what we should be doing if we want to retain our top talent, people have to feel invested in and developed — and that’s across all dimensions of diversity.”
But employers caution if their values don’t align with these young professionals, they may feel inclined to leave.
“I wouldn’t stay too long at an organization that the firm’s values don’t align with your values,” Adams said. “You may be able to drive change, but at some point, you’ve got to be able to determine ‘is it right for you or not?’ But never compromise who you are.”
