Meketa: Most managers using DEI policies but execs remain less diverse

Over three-quarters of money management firms have formal policies for diversity, equity and inclusion, but the population of decision-makers remains less diverse than other parts of the organizations, according to the results of a questionnaire from investment consultant Meketa Investment Group.

In Meketa's second annual Diversity, Equity & Inclusion Questionnaire, which surveyed 420 money managers in January, 78% of respondents said they have a formal DEI policy in place, and an additional 6% said they plan to implement such a policy sometime in 2022.

Among the total number of respondents, 389 firms chose to report diversity statistics for their firm, but only 227 firms chose to report diversity statistics for their boards, and 241 reported equity-ownership figures.

Among respondents who placed in the top quartile with the highest percentage of female and minority employees (at least 42% and 39%, respectively), operations functions were 54% minority and 65% female (compared with 48% and 57%, respectively, in the first survey in 2021). Administrative positions among respondents with the highest percentage of minority and female employees were 66% minority and 83% female (compared with 56% and 100%, respectively, in the first survey).

In that same top quartile, however, female and minority employees make up less than 21% and 17%, respectively, of employees with equity ownership and 20% and 26%, respectively, of employees who are portfolio managers.

In 2021, respondents said 42% of all new hires were either female hires, diverse hires or both. However, 59% of all promotions were given to males and 67% to non-racially diverse people.

Only 283 managers had responded to Meketa's first DEI questionnaire conducted in January 2021.

"While we are very pleased that we almost doubled the number of survey responses this year, we hope to see even greater participation over time," said Peter Woolley, co-CEO of Meketa Investment Group, in a news release announcing survey results.

"We believe investment managers can further differentiate themselves by implementing a range of DEI-focused initiatives such as diversifying boards, expanding ownership, ensuring that there are policies and committees to support DEI at all levels, and partnering with MWDBE service providers," Mr. Woolley said. "Such efforts will more fully encourage diversity and inclusion in all its forms, strengthening organizations and outcomes for our clients."

The results of Meketa's questionnaire will be used in its manager evaluation and selection process. The questionnaire will also be included in all the firm's RFPs and due diligence for managers.

The full report is available on Meketa's website.