While women remain underrepresented in asset management globally, South Africa is demonstrating tangible progress. The introduction of frameworks like the 27four DEI Index offers a structured approach to tracking transformation across dimensions such as ownership, representation, and governance – a notable step toward measuring and advancing equity in the industry. Yet in contrast, the US is experiencing a retreat from many of its DEI commitments. Prominent companies like Meta, McDonald’s, and Target have scaled back or abandoned their diversity programmes due to political pressures and shifting public sentiment.
This dichotomy underscores both the leadership opportunity and responsibility South African corporates and government have in advancing and normalising inclusive practices within asset management and all other industries.
At Old Mutual Investment Group, we recognize that including diverse voices – across gender and backgrounds – brings not just equity, but also tangible advantages. Research consistently shows that diversity fosters enhanced creativity, greater diligence, and higher performance. A study from UC Berkeley1 found that being around people who are different makes teams more “creative, diligent, and hard-working”. Similarly, academic research shows that gender-diverse teams, particularly those where women’s voices are meaningfully included (rather than tokenised), unlock higher levels of innovation. Therefore, empowering women in asset management should not be seen as only fair but also good business practice.
The evidence of this correlation between gender diversity and innovation is seen within the Old Mutual Investment Group Indexation team, which is powered by a team of four women and three men, collectively managing R141 billion in assets under management. Each member contributes distinct strengths and perspectives that are critical in today’s highly competitive industry. This diversity of thought enriches outcomes for all stakeholders: from employees and clients to shareholders. It is more than a corporate responsibility; it is a deliberate business model that enables people to flourish and ensures stronger, more resilient performance over time.
A diverse approach to investing
When it comes to our investment approach, the same gender diversity principles apply. Our Old Mutual MSCI Emerging Markets Selection Index Fund and Old Mutual MSCI World Selection Index Fund approach environmental, social and governance (ESG) metrics as both a means to enhance returns and a tool for more effective risk management, where we look at risk beyond the traditional financial and mainstream measures. The funds’ parent indices, the MSCI Emerging Markets Index and the MSCI World Index, are widely recognised emerging (EM) and developed market (DM) equity indices, focusing on an investment universe comprising thousands of stocks, from which they select the top half of companies with the best ESG ratings.
Alongside the philosophy of buying high-quality and resilient companies at attractive prices, the focus on ESG factors, particularly the social aspect, naturally lends itself to a positive bias towards diverse and inclusive leadership teams. While the funds’ strong female leadership focus is not a rigid target, it is a deliberate outcome of their ESG-centric investment strategies.
To date, both funds have outperformed their parent indices – MSCI World and MSCI Emerging Markets in terms of both female representation and performance. By comparing the funds’ performances to their respective indices, investors can assess the value added by the funds’ ESG focus, including the relatively higher weighting to gender-diverse leadership teams. By investing in companies with strong female leadership and robust ESG practices, both funds are not only driving financial returns but also shaping a more equitable future within both developed and emerging markets.
As a steward of global assets, a focus on gender diversity among the investee companies in our portfolios is critical, as this is not only a local challenge. This is why we engage with global firms, through our partners, to emphasise the importance of diversifying a team. In recent company engagements, we voted against the election of certain board candidates due to the company’s board gender diversity falling below 30% female representation. The journey ahead is still long, but we remain committed to driving positive change – both within our organisation and beyond – wherever we can make a meaningful impact.