Latest study reveals women still account for less than 1 in 10 fund managers

16 June 2016
 

Latest study reveals women still account for less than 1 in 10 fund managers

In its fourth annual analysis of the proportion of UK retail investment funds, such as OEICs, unit trusts and investment trusts, managed or co-managed by women, leading investment group Tilney Bestinvest has estimated that just 8.5% of fund managers are women.

Although this figure is higher than the 7% identified last year, the increase is partially explained by Tilney Bestinvest’s latest analysis covering all sectors whereas previous studies were based on the five largest Investment Association sectors. The firm found a number of smaller and more specialist sectors including China, Tech & Telecom and Japanese equities had higher representation of women. On a like for like basis, the proportion of women running funds in the five main sectors nevertheless rose to 7.8%.  

Jason Hollands, Managing Director at Tilney Bestinvest, commented: “Our analysis once again demonstrates that despite a handful of high-profile women in senior management positions within the industry, front-line fund management positions are usually held by men.” 

“Gross gender imbalance in the asset management industry is an irrefutable fact but the unanswered question is why this is the case when women represent a large ratio of university graduates and improved diversity is evident in many other professions? For example almost half of GPs are women, one in four partners at law firms are now women and the portion of women on the Boards of FTSE 100 companies is now 26%.

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

“There won’t be a quick fix, but firms need to consider how they recruit at the graduate entry level, particularly in areas like research which is often the key stepping stone into portfolio management. If the industry shows it is serious about understanding this problem and addressing it, it will also speak with greater authority when engaging with company Boards on matters of diversity.”  

-ENDS-

Important information:

The value of investments, and the income derived from them, can go down as well as up and you can get back less than you originally invested. This press release does not constitute personal advice. If you are in doubt as to the suitability of an investment please contact one of our advisers. Past performance is not a guide to future performance.

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Press contacts:

Jason Hollands
0207 189 9919 / 07768 661382
jason.hollands@tilneybestinvest.co.uk

Gillian Kyle
0203 818 6846 / 07989 650 604
gillian.kyle@tilneybestinvest.co.uk

About Tilney

Tilney is a leading investment and financial planning group that builds on a heritage of more than 180 years.  Our clients are private investors, charities and professional intermediaries who trust us with over £23 billion of their assets. We offer a range of services including financial planning, investment management and advice and, through our Bestinvest service, a leading online platform for those who prefer to manage their own investments.

We have won numerous awards. Tilney has been awarded Best Conventional Advisory Service at the 2018 City of London Wealth Management Awards, Best Advisory Service in the 2015 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. Bestinvest was voted Best SIPP Provider and Best Fund Platform at the 2017 City of London Wealth Management Awards, Best Direct SIPP Provider at the YourMoney.com Awards 2017, Best Stocks & Shares ISA Provider at the 2017 Shares Awards, as well as Best Self Select ISA Provider, Best Online/Execution-only Stockbroker and Best Investment Platform 2017 at the FT and Investors Chronicle Investment and Wealth Management Awards, as voted by readers of the FT and Investors Chronicle.

Headquartered in Mayfair, London, the Tilney Group employs over 1,000 staff across our network of 30 offices, enabling us to support clients with a local service throughout the UK.