Alternatives, liability-driven investment and multiasset managers aren't sufficiently considering factors such as gender when researching potential investments, according to research published Tuesday by U.K. consultant Redington.
The firm's Sustainable Investment Survey of 112 money management firms globally — which collectively manage more than $10 trillion in assets — found that 94% of all managers believe having diverse teams has a positive impact on their investment processes.
Yet fewer than half of alternatives, liability-driven investment and multiasset managers perform diversity assessments as part of their investment due diligence, the survey found.
Some 44% of private debt managers, 39% of multiasset managers and only 24% of real-asset managers considered gender in their investment process compared with 68% of traditional credit managers and 58% of equity managers, the survey showed.
Still, on average, half of all managers surveyed considered gender in their investment process in 2021, compared with 47% in the firm's initial survey in 2020.
For managers, who were also surveyed about other factors, race increased in importance as a factor as well in 2021, with 37% of all managers considering race in their investment process, compared with 19% in 2020.
However, Redington said the results of this year's survey indicate that on average 68% of investment teams consist of white employees.
The managers were also surveyed on the significance of age, education, professional experience, religion and sexuality.
"From the data, we recognize that there is no short-term solution and that progress will likely be slow. A key focus for us is to engage with managers to provoke change by asking challenging questions," said Nick Samuels, head of manager research at Redington, in the news release.
