Latest study reveals increase in female fund managers, but still only 1 in 10 money managers are women

14 June 2017
 
  • Presence of female fund managers doubles over a five year period

In its fifth annual analysis of the proportion of UK retail investment funds, such as OEICs and unit trusts, managed or co-managed by women, leading investment group Tilney has estimated that the number of funds managed by female managers has risen to 9.2%, up from 8.5% last year. Tilney’s analysis looked at funds across all of the Investment Association sectors and includes funds managed on a team rather than named manager basis.

Jason Hollands, Managing Director at Tilney Group commented:

The representation of women in front line fund management positions remains very low and lags the progress seen in many other professions, with one in five partners at law firms now women. However, the representation of women in frontline fund management roles is clearly rising: when we commenced this analysis in 2013 our research estimated that just 5% of all funds were managed or co-managed by female fund managers, so the percentage of identifiable female fund managers has doubled over the last five years.

“Fund management is first and foremost a human capital industry, reliant on finding very bright and analytical staff to look after other people’s wealth. It's clearly not healthy for the long term success of the industry to have such an imbalance like this because it suggests it is not effectively drawing upon the widest pool of talent.

“There isn’t a quick fix as ultimately there are a finite number of funds and incumbent managers can remain in situ for many years before passing on the baton to a successor. But firms can make a difference when recruiting at the graduate entry level and especially in areas like research which is often the key stepping stone into portfolio management. 

“Achieving improved gender diversity will also enable the fund management industry to speak with greater authority when engaging with company Boards on matters of diversity as many firms seek to do as active shareholders. Here, there has been notable progress since the publication of the Davies Report* in 2011 with women now accounting for 26% of Board positions at FTSE 100 companies, up from 12.5% in 2010.”  

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*https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/31480/11-745-women-on-boards.pdf

About Tilney

Tilney is a leading investment and financial planning firm that builds on a heritage of more than 150 years. The Tilney Group operates under the Tilney brand for Investment Management and Financial Planning and Bestinvest for execution-only investing. We look after more than £22 billion of assets on our clients’ behalf and pride ourselves on offering the very highest levels of professional client service with transparent, competitive pricing across our entire range of solutions.

We offer a range of services for clients whether they would like to have their investments managed by us, require the support of a highly qualified adviser, prefer to make their own investment decisions or want to take more than one approach. We also have a nationwide team of expert financial planners to help clients with all aspects of financial planning, including retirement planning.

We have won numerous awards including Best Fund Platform and Best SIPP Provider at the 2017 City of London Wealth Management Awards; Investment Award – Cautious category in the Private Asset Management Awards; and Stockbroker of the Year, Execution-only Stockbroker of the Year and Self-select ISA Provider of the Year 2015, as voted by readers of the Financial Times and Investors Chronicle. We are pleased that our greatest source of new business is personal referrals from existing clients.

Headquartered in Mayfair, London, Tilney Group employs over 1,000 staff across our network of offices, giving us full UK coverage, and we combine our award-winning research and expertise to provide a personalised service to clients whatever their investment needs.