Gender diversity progress in investment management ‘encouraging’

Oksana Patron

7 August 2023

Although still more action is needed, the gender diversity in Investment Management 2022 report by HESTA has indicated an ‘encouraging progress’, with more women represented within its managers.

Hesta’s biennial survey showed that women accounted for 24% of the investment management workforce among HESTA’s external investment managers, marking an increase from 22 per cent in 2020 and 17 per cent in 2018 and there was an upward trajectory.

The survey also indicated that women filled 25% of investment team roles at unlisted managers, a slight increase from 24% in 2020.

Listed managers saw a notable improvement, with women’s representation in investment team roles rising from 17% in 2020 to 22% in 2022.

The more detailed data also demonstrated that among listed managers, the most notable improvements were observed in Chief Investment Officer (CIO) roles, which saw an increase to 25% of roles being occupied by women in 2022.

“There were previously no women in CIO roles in 2018 or 2020. Women also filled 25% of roles in Investment Committees, up from 14% in 2020,” the report said.

Listed managers also saw improvements across various roles in their teams, with 20% of Portfolio Managers (or equivalent) positions occupied by women (up from 14% in 2020), Senior Investment Analysts (23%, up from 18%), and Investment Analysts (27% up from 23%).

As far as unlisted managers were concerned, the survey found a rise in women’s representation at the partner (or equivalent) level to 13% from 10% in 2020 and 2018. Women also filled 18% of Investment Committee roles, up from 11% in 2020.

However, Managing Directors (or equivalent) (20% in 2020, down to 13% in 2022) and Vice Presidents/Directors (or equivalent) (30%, down to 28%) saw a reduction in the percentage of women’s roles. Senior Investment Analysts saw the strongest improvement, up from 24% of these roles filled by women in 2020 to 33% in 2022, and Investment Analyst (from 29% up to 31%).

HESTA Chief Investment Officer Sonya Sawtell-Rickson said that the report highlighted that the percentage of women in roles across different levels of seniority fell below the desired 40:40:20 ratio, which aimed for 40% women, 40% men, and 20% any gender.

“With that objective in mind, there is a long way to go to achieving gender balance in the investment management sector,” she said.