Gender diversity sought in investment sector roles

The Chartered Financial Analyst (CFA) Institute, a global association of investment professionals, had recently come up with a survey of investment management professionals on the subject of gender diversity. According to the findings of this research, while women continue to make gains within the industry, much more needs to be done to ease the global bottleneck that is preventing their full and equitable advancement within the profession. 

In the report, Gender Diversity in Investment Management, which saw the participation of 5,259 investment professionals, it was found that almost half of the survey respondents did not believe that gender diversity is a significant issue in investment management. 

This is believed to be one of the reasons why women are so under-represented at every level of the financial profession. Compared with their male counterparts, the top female investment professionals only hold 9.8 per cent of CEO roles, 10.2 per cent of chief investment officer roles, 11 per cent of chief financial officer roles, 14.9 per cent of portfolio managers, 15.1 per cent of investment consultants and 17.3 per cent of personal financial advisors or planners. 

Women are more likely than men to have jobs that support or service those in investment management (22 per cent for women versus 16 per cent for men). The gender gap in the investment management profession can also be explained by the divide that happens in the homes of investment industry professionals. 65.9 per cent of women reported that they were responsible for 50 per cent or more of family care, versus 22.4 per cent of men. Vidhu Shekhar, CFA, Country Head, India, CFA Institute says, “Young women are hesitant to enter the investment management industry as it is perceived as being male-dominated. However, there are several opportunities for women as well and they should be encouraged to enter the profession. Women bring a unique perspective to their roles across the industry which benefits the companies they work for, and ultimately, the investors.” 

While portfolio performance is often seen as the ultimate criteria in investment management, the research indicates that a growing number of investment management professionals and investors – both individual and institutional – are placing increasing importance on gender diversity. The study said that the disparity could be remedied by providing young women with early exposure to the investment industry in their college years and early career, emphasising to all investors the positive impact that gender diversity can have on investment performance and working to bridge the work-life balance gap that disproportionately affects women.