This article was originally published by our sister title, Portfolio Adviser
While 83% of European asset managers have measurable goals in place for gender equality, just 19% have a similar system in place for social mobility, a report from the Diversity Project Europe has found.
The survey, which received 30 responses from medium to large asset managers with a total AUM of over €12.4trn, also found that just 20% of surveyed European asset managers collect data on social mobility. The Diversity Project attributed the disparity of social mobility reporting to the “complexity of the topic and the varying interpretations and issues across countries”.
Bas NieuweWeme, CEO at Aegon Asset Management, said: “Social mobility is a concept we must embrace with vigour. Having returned to the Netherlands after 20 years in the US, I realised we need to broaden our focus beyond gender diversity.
“We have an opportunity to expand DEI initiatives to include the less privileged population here. Despite GDPR constraints, voluntary disclosure models, as seen in the US, can be a guiding light. It’s time for us to define and prioritise social mobility, recognising the untapped potential of our diverse university graduates.”
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While gender diversity has received attention from many asset managers, a disconnect remains between the percentage of women in investment and sales positions compared to support roles, such as HR and IT. Just one company reported that over half of its investment and sales team were women, while eight responded that over half of the support team were women. Near half of surveyed companies marked the percentage of women in investment and sales between 21% and 40%.
The ratio of women in asset management also declined with seniority. While over 40% of those in junior level roles were women for the majority of firms, by the C-suite and partner level, near half of companies had 0-20% of women making up these roles.
“Only 38% of organisations in European asset management strategically attract women in underrepresented roles through targeted job platforms and relevant partnerships. Companies could be more creative in attracting female talent, considering, for example, that more women than men in the EU now complete tertiary education, ” the report stated.
“Mentoring and sponsorship can be powerful and practical levers for strengthening the female talent pipeline. Yet only 52% of respondents fully agreed that they offer targeted mentorship programmes for female talent.”
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The business benefits of DE&I efforts were recognised by 80% of the asset managers surveyed by the Diversity Project Europe, but need for progress remained in implementation. Just 14% reported that leaders and people managers where held accountable for DE&I objectives, with rewards tied to the achievements in this area. The report stated European asset managers were, as a collective, at “the lower end of established maturity” for addressing DE&I in the business, with an average score of 3.4 out of 5 for maturity.
Craig Blair, country head for Luxembourg at Franklin Templeton, added: “Diversity, equity and inclusion should not be considered as problems to be solved, but rather as opportunities critical to the future attractiveness of the financial services industry. Developing an ecosystem rich in diversity will not only make organisations better places to work, but will also contribute to a more relevant and resilient business.
“On this journey, we must be informed by data and use it to implement sustainable strategies for DE&I. The report suggests that although there are positive intentions across the industry, further progress is needed.”
