Results from a pair industrywide surveys reveal that although the investment management industry is working towards increasing diversity in their organizations, the sector is still very far from racial and gender parity.
Results from the Investment Company Institute/McLagan U.S. Asset Management Diversity and Inclusion Survey show that as of Nov. 1, women represent 41.8% of the asset management industry's workforce while minorities make up 30.5%.
At the senior leadership level, 83.7% of executives are white and 74.6% are male.
"The numbers don't lie," said Mellody Hobson, president and co-CEO of Ariel Investments and a member of ICI's board of governors, in a news release announcing the survey results. "The data tell a truth we've long known — we must ensure more women and minorities are working in all levels of asset management by creating opportunities for advancement."
ICI's survey also found that 89% of the firms surveyed consider diversity and inclusion factors when recruiting, hiring, retaining and promoting talent, while 84% take steps to promote a diverse pool of candidates when selecting people for executive and senior positions.
Only 44%, however, include diversity and inclusion objectives in their managers' performance plans.
"We have a long way to go, but I'm glad we are holding ourselves accountable and are making the commitment to improve," Ms. Hobson said.
The ICI/McLagan management survey compiled answers from 65 asset management firms representing $21.9 trillion of assets under management.
Meanwhile, a survey of the gender, racial, and ethnic makeup of the boards of 181 fund complexes managing a total of $23.4 trillion in assets conducted by the ICI and Independent Directors Council show that as of Dec. 31, 2019, women represent 29.7% of all independent directors and 45.5% of independent directors who were nominated and started serving in 2019.
Minorities, on the other hand, represent only 10.7% of all independent directors and 22.5% of independent directors who were nominated and started serving in 2019.
Broken down further, Black/African American executives make up only 6.5% of all independent directors, and 16.9% of independent directors who were nominated and started serving in 2019. Those that identify as Asian/Pacific Islander represent 1.9% of all independent directors, and 1.4% of independent directors who were nominated and started serving in 2019. Hispanic/Latinx people represent 1.4% of all independent directors, and 2.8% of independent directors who were nominated and started serving in 2019.
