A significant gender and racial gap remains among portfolio managers, but a more diverse population of investment analysts suggests a positive future, said a new study of asset managers from Morningstar.
In the manager research firm’s Diversity in Asset Management study released Nov. 14, the overall population is still resoundingly white, with 37% of all asset management employees white and male; 25% white female; 9% Asian male; 7% Asian female; 5% each Black female, Hispanic male and Hispanic female; 3% Black male; and the rest other races and/or two or more races.
Morningstar collected demographic data for more than 146,000 employees at 40 asset management firms with more than $16 trillion in U.S.-domiciled assets under management. The data is as of Dec. 31.
Overall racial diversity among portfolio managers is lacking, according to the study. Among portfolio managers, 75.1% are white; 15.1%, Asian; 3.4% Hispanic; 1.6%, Black or African American; 0.9%, two or more races; and the rest Native American and other indigenous peoples and other races.
“Within racial and ethnic groups, the split between male and female portfolio managers was somewhat consistent except for white portfolio managers, where only 15% are female. Among Asian, Black, and Hispanic portfolio managers, between 20% and 30% of respondents are female,” the study said. “On average, 18% of all portfolio managers included in the survey are female.”
Despite the discouraging portfolio management statistics, the study said investment analysts are among the most diverse groups in the study and could be a leading indicator of future diversity among the portfolio management ranks.
Among investment analysts, 62.8% are white; 23%, Asian; 4.7% Hispanic; 3.7%, Black or African American; 1.9%, two or more races; and the rest Native American and other indigenous peoples and other races.
“Women make up between 20% and 30% of most racial and ethnic groups on the analyst bench, similar to their representation among portfolio managers,” said the study. “However, 38% of Asian analysts are female, well above the average 26% of all analysts included in the survey.”
The study can be found on Morningstar’s website.