The asset management industry faces a critical diversity crisis as new data reveals women represent just 13% of fund managers globally. This shocking statistic has remained virtually unchanged for a decade, despite numerous high-profile initiatives and overwhelming evidence that diverse teams deliver superior performance.
Asset Management Gender Diversity: A Decade of Stagnation
According to the latest Citywire Alpha Female report, the asset management gender diversity landscape shows minimal improvement. Out of more than 18,400 money managers worldwide, only 12.9% are women. This represents a marginal increase from 12.5% last year and 10.3% in 2016. Sophie Downes, co-author of the report, emphasizes the disappointing progress. “We’ve heard extensive talk about diversity initiatives,” she states, “but overall numbers show grindingly slow advancement.”
Performance Benefits of Diverse Teams
Mixed-gender teams now manage nearly 15% of funds, significantly up from 6.7% a decade ago. These teams consistently demonstrate superior performance metrics. Analysis reveals they delivered the lowest volatility in four of the past five years. Baroness Helena Morrissey, former CEO of Newton Investment Management, explains the advantage. “Men and women have complementary risk approaches,” she notes. “Different thinking patterns lead to better investment outcomes.”
Persistent Disparities in Asset Management
The industry continues showing significant gender imbalances. Nearly 80% of funds remain managed exclusively by men, overseeing £11.7 trillion in assets. Conversely, funds run solely by women manage just £548 billion. The disparity extends to fund size, with male-only funds averaging £535 million compared to £362 million for female-managed funds.
New Launches and Career Advancement Challenges
New fund launches show concerning trends. Only 3% of newly launched funds went to sole female managers this year, down from 5% last year. None were assigned to female-only teams. These high-profile assignments serve as critical career accelerators, raising concerns about systematic overlooking of female talent for premium opportunities.
Retention and Turnover Issues
The report highlights a significant retention gap in asset management gender diversity. Despite expectations that flexible working would benefit women, female portfolio managers show 44% turnover compared to 30% for men. This suggests ongoing challenges in retaining female talent within the industry.
Asset Class Variations and Global Backlash
Representation varies dramatically across asset classes. Commodities and alternative assets show the lowest female representation at 8.2% and 5.7% respectively. Bond funds perform slightly better at 13.6%. These findings emerge during global pushback against diversity initiatives, with major firms scaling back DEI policies.
Industry Response and Future Outlook
Industry leaders maintain commitment to asset management gender diversity despite regulatory shifts. Karis Stander of the UK’s Investment Association emphasizes focusing on accessibility rather than quotas. “Some firms reframe programs as talent initiatives rather than diversity efforts,” she explains. “This approach opens broader thinking about inclusion and opportunity.”
Frequently Asked Questions
What percentage of fund managers are women globally?
Women represent just 12.9% of fund managers worldwide, according to the latest Citywire Alpha Female report.
Have mixed-gender teams shown better performance?
Yes, mixed teams demonstrate lower volatility and better risk-adjusted returns, outperforming single-gender teams in four of the past five years.
What is the turnover rate for female portfolio managers?
Female portfolio managers show 44% turnover compared to 30% for male managers, indicating significant retention challenges.
Which asset classes have the lowest female representation?
Commodities (8.2%) and alternative assets (5.7%) show the lowest levels of female fund managers.
Are new fund launches improving gender diversity?
No, only 3% of new launches went to sole female managers this year, down from 5% last year, with none to female-only teams.
How has regulatory environment affected diversity initiatives?
Global pushback against DEI has caused some firms to scale back policies, though industry leaders maintain commitment to diversity goals.
