Women participation in investment management drops YoY: FSC

The latest Women in Investment Management Survey commissioned by the Financial Services Council (FSC) has found the average women representation in investment management teams has dropped by two per cent from last year.

The 2024 survey, conducted by Storniolo Consulting and completed by 18 council members, confirmed that women make up 27 per cent of investment management teams on average, down from 29 per cent in 2023 and on par with 2022’s results.

The results also indicated that the proportion of women in Chief Investment Officer or similar roles fell by nine per cent from 11 per cent in 2023 to two per cent in 2024, while the average proportion of women in portfolio management and analyst roles rose sharply in the same period, from 18 to 23 per cent and 41 to 75 per cent respectively.

“Growing women participation in investment management teams remains a focus for the industry. Funds are considering ways to make their teams more diverse, and this survey is design to assist them on this journey, but the industry acknowledges there is still a long way to go,” CEO of the Financial Services Council, Blake Briggs, said.

“The survey highlights the efforts a number of funds go to in order to increase diversity in their teams, including growing the pipeline of talent by investing in school and university education programs.”

Survey respondents also showed some progress made in their setting and tracking of gender diversity targets, with 94 per cent now tracking gender diversity in investment management teams (up from 83 per cent in 2023) and 72 per cent having set formal diversity targets within their organisation (up from 56 per cent in 2023). Of those who have set a formal target within their investment management team, 39 per cent have made “strong progress” towards or have met their target.

Respondents also indicated that, when considering the entirety of their organisation and not just investment management teams, women accounted for 44 per cent – an improvement from the 36 per cent recorded in 2023. Just over three-quarters (78 per cent) of members polled also said they track other diversity statistics besides gender.

“The survey highlights there are investment managers who are leading the way for diversity, including gender diversity, and it’s not necessarily just the bigger, most well-resourced funds that are doing the most,” Storniolo Consulting Managing Director, Cecilia Storniolo, said.

“Funds of all sizes have varying programs and metrics they are using to track diversity and this survey contributes to the literature, allowing funds to benchmark themselves against other Australian businesses.”