Investment consultants are more likely to recommend hiring money managers that commit to diversity and inclusion, according to a study from Coalition Greenwich.
The study's report, "Commitment to Diversity and Inclusion: The Hidden Competitive Weapon," finds a correlation between the perceived commitment by money managers to diversity and inclusion and their performance in range of metrics including the likelihood of being recommended by investment consultants.
The group of "D&I leaders" consisted of managers who received the top 10 highest ratings for diversity and inclusion. Utilizing a pool of 126 money managers, the study asked investment consultants which firms they would recommend for a manager search, and a total of 27 managers were noted. Of that total, 21 were D&I leaders, according to the report.
When asked about the level of confidence that managers will deliver on expectations, D&I leaders scored 31% higher than the rest of the manager pool.
"In some industries, the economic payoffs of diversity and inclusion can take time to emerge," said Susan Gould, relationship manager at Coalition Greenwich and author of the report. "That's not the case in asset management. In this industry, managers that demonstrate a true commitment to D&I have created a powerful competitive weapon."
The full report is available on the Greenwich website. Registration is required.
