For more than a decade, we have been committed to increasing diversity by addressing both racial and gender under-representation, and our efforts have yielded tangible results at every level of our organisation.
However, the road to gender parity in the asset management industry is still steep. According to the Citywire Alpha Female Report 2024, women represent only 12.5% of portfolio managers in the global Citywire database, up just slightly from 12.1% in 2023. In South Africa, this figure is even lower at 11%. Despite the incremental progress, the gender gap remains a tough challenge, especially in senior investment roles – a challenge that we are determined to overcome.
The missed opportunity in asset management
The underrepresentation of women in asset management is not just an issue of fairness, it is a missed opportunity for enhanced investment outcomes. Studies published by the likes of McKinsey & Co and the Peterson Institute for International Economics, underscore the multifaceted benefits of having women in these roles, from improved performance and risk management to better client relationships and more sustainable investing practices. The overarching theme is clear: gender diversity in investment teams fosters better decision-making, innovation, and overall firm performance.
At Old Mutual Investment Group, we are proud to lead by example. Our talented executive team, comprising representatives from various racial groups and with a diverse skill set, is 43% female, substantially above the global average. This demonstrates to aspiring young professionals that we value top talent regardless of race or gender. Moreover, female representation in our investment teams is currently at 31%, marking a significant step forward.
A shared responsibility for change
The challenge of achieving gender parity in asset management should be the responsibility of every senior leader in the industry. Because we take this commitment seriously, our transformation journey is led by an Executive Transformation Committee that monitors our progress against specific targets in hiring practices, career advancement, pay equity and ownership. But achieving meaningful change and gender parity for future generations requires more than just oversight; it requires targeted, gender-focused interventions and strategies.
Leading the way: Gender-focused interventions
Here are some of the ways in which we drive gender transformation in asset management:
1. Increasing female scholarships and internships
a. To attract more women into the investment industry, it is important that we start at the entry level. The Imfundo Trust, funded by dividends from Old Mutual Investment Group and other Old Mutual Investments’ affiliates, supports young black scholars pursuing investment industry careers at South African universities. For the 2024 academic year, 20 of the 34 scholarships have been awarded to black female students, reflecting our commitment to building a diverse pipeline of future talent.
b. Over the past decade, we have run our Analyst Development programme, which provides three or four new analysts a year with an entry-level position. This programme is a great opportunity for women entering the investment industry. Several of our senior female investment talent started their careers through this programme.
2. Flexible Parental Policies
Our flexible parental policy recognises that caregiving roles should not be limited by gender. While we go all out to provide maximum support for birthing mothers, we are also challenging societal norms by creating parental leave support options for all genders. This flexibility helps women retain their investment careers through various life stages.
3. Fostering an Inclusive Environment
Creating an inclusive environment and implementing policies that ensure equitable practices are crucial for the succession and retention of women in the typically male-dominated investment workforce.
We regularly measure the psychological safety of all groups through culture surveys and provide education on unconscious bias and micro-aggressions. In addition, our investment teams employ processes that ensure active participation of all our investment analysts and portfolio managers in the investment decision-making processes. Our anti-discrimination and harassment policies enforce zero tolerance so as to eliminate these destructive habits.
4. Development and Mentorship Opportunities
We invest approximately 3% of our annual budget in training and development, focusing on technical skills, such as the CFA qualification and long-term leadership development. Our succession planning also ensures that there is sufficient female representation at all levels of our pipeline, particularly for senior leadership and key investment roles. We run an Investment Leadership Development Programme and the Unleash Her Leadership Development programme to enhance the growth and development of our middle and senior females and prepare them for senior roles. We also have a formalised mentorship programme. Mentorship is a proven method for personal and professional development. It provides an opportunity for both mentees and mentors to learn, grow and form valuable connections.
5. Understanding Unique Barriers
A key factor in supporting the success of women in the workplace is understanding the unique barriers that women face. Not all of these are workplace-based – many are societal. Research shows that women are still bearing most of the responsibility for childcare, domestic tasks and, increasingly, care for other adults – even if they are the primary earner in the household. This domestic load is impacting the mental health and stress levels of our women. In the workplace, we can provide coaching on and mentorship in how to effectively navigate these challenges, while also providing flexible work practices that ensure work/life balance.
Looking ahead
We are committed to driving gender transformation, not just within our organisation but also by serving as a model for the entire asset management industry. We believe that achieving gender parity will require ongoing dedication, innovative strategies and the active involvement of every senior leader. By continuing to push for change, we hope to create a more equitable and successful future for all.
Our transformation agenda isn’t just about meeting quotas – it’s about unlocking the full potential of talent and fostering an environment where everyone can thrive. The future of asset management is diversity, and we are proud to be leading the charge.
Explore the full Transformation Report here.