Why are there not more women fund managers?

Women managers account for about 14 percent of the 25,000 portfolio managers globally, according to a 2022 Bloomberg report; a Morningstar study confirms that the number has not changed since the late 2000s. The report also indicates that women managers are more represented in smaller fund markets, such as China, with 28 percent of managers. However, in larger fund markets, such as the United States, Canada, and the United Kingdom, women's representation is lower than the global average.

So today, to honor female fund managers who have broken the glass ceiling in the asset management industry, we spoke with some of them about their experiences.

In order to celebrate those fund managers, smashing the glass ceilings of the asset management industry, we wanted to chat to some of them to learn about their experiences and how they see and experience the lack of women in fund management positions.

Erin Bigley, Chief Responsibility Officer, AllianceBernstein

I strongly believe in the importance of women empowering other women, especially when it comes to women working in finance. We need to create a work environment that allows us to thrive and advance, and we need to pave an attractive path for future talent.

When it comes to women in the workplace, we are stronger together. I have been fortunate to have examples of sustainable female leadership throughout my life: from my grandmothers, who were both strong single mothers at a time when that was rare; to my mother, who was my strongest supporter, whether it was a spelling bee, a basketball game, or moving my career goal from engineering to financial services; to the four exceptional female managers I was fortunate to work with during my career at AllianceBernstein, whose support and advice enabled me to advance in my career.

It is important for me to repay this commitment and encourage others to do the same through mentoring, sponsorship, and support in the workplace.

Irina Kurochkina, co-gestore del Global Sustainable Sovereign Bond Fund di Aegon AM

To be honest, I never think of myself as a woman manager; I enjoy my work and am convinced that gender does not determine performance. I admit that I was fortunate to start my fund management career in a company with a not overly hierarchical organizational structure, where all voices were welcome, regardless of gender or seniority. So I never had any negative experiences, nor did I experience any obvious gender discrimination. I believe that an inclusive environment is the foundation of diversity so that people with different backgrounds find a listening ear and have an equal chance to be promoted and valued. Companies need to make sure that diversity is not just a word on paper, but a driver for better decision-making and idea generation that will ultimately benefit customers and the company.

We are seeing an increase in awareness about the value of diversity in business. This is an important step, but there is still a big gap that the industry cannot address alone. When I attended my master's program in financial economics, female students made up only about 30 percent of the class, so it is difficult to expect equal representation of both sexes in financial roles. For all professions to be valued equally, it is essential to improve equality in education, access to social benefits, and family planning.

I have noticed that some female candidates associate management roles with longer working hours and a more stressful environment because it is still seen as a more aggressive and male-dominated field. This perception is usually based on an outdated reputation that is not representative of the modern work environment. This negative image needs to be addressed because it prevents the industry from becoming more diverse.

Companies need to ensure that diversity is not just a word on paper, but a driver for better decision-making and idea generation

Marie Lassegnore, ESG Fixed Income & Cross Asset/Credit Portfolio Manager at La Française

I will never know if I benefitted from positive discrimination when I entered the industry, but I do think I met the technical and analytical requirements of the position. I am convinced that companies should and will keep recruiting the best candidates for each job profile. The reality is that in the fund management sector, there are fewer female applicants.

Therefore, the question is not about women vs men’s ability to perform the role of portfolio manager. For me, the issue runs deeper: the fund management industry is not promoted amongst students until the undergraduate level (after high school). I believe that our educational system should put more emphasis, and earlier on in the orientation phase, on promoting diversity in industries, such as fund management, which are still male dominated.

Have you seen a change in the industry in recent years? do you think the fund manager position is evolving towards gender parity?

Within the firms I’ve worked for as a PM, I have experienced being the only woman in the team as well as being in a team with 50% of women. In my personal experience, your professional performance or your ‘happiness at work’ does not rely on a gender equality index but on the personality of the people you are working with. I have been very lucky to always feel welcome and valued.

What I have noticed more recently is the increased scrutiny put on diversity with the intertwined theme of closing the gender pay-gap. This comes from the growing importance of CSR for asset managers who will embed it in their recruiting objectives but also from asset owners as some of them now specifically ask for the gender equality index in the fund management teams in their due diligence process.

Examples of market initiatives that have emerged in recent years and that I value as catalysts of positive change are the ones around “returners” (when you have been out of the industry for a couple of years due to personal reasons), internal mentoring programs for women, paternity leave extensions (in France) or mat/pat-ernity leave sharing program (in the UK).

Galina Besedina, Portfolio Manager Emerging Markets Equity Candriam

No access to so-called ‘men’s clubs’ where sometimes important information shared in a non-official way, and where stronger links are created; makes women to be the last ones to know about certain crucial developments and make their opinion to be un-heard and un-recognized; this simply eliminates women from the decision making process. I believe that it damages the team and performance. Diversity, involvement, and fair treatment on the other side create an excellent ground for a variety of opinions best solutions and bring outstanding results.

Have you seen a change in the industry in recent years and do you think the fund manager position is evolving towards gender parity?

Overall, minimal change; unfortunately, for example,  11% we are talking about has remained unchanged over the last decade. The Asia Pacific is the only region where this percentage is much higher^[1]. One pleasant change which I have been observing over the last couple of years is that clients prefer funds managed by a team of managers including women. This is thanks to the better performance, which diverse teams were able to show^[2]. This may accelerate the transition towards gender equality, from promoting women to fund managers positions. However, overall the financial industry faces a shortage of women graduate students. The split of graduates in the financial sector was heavily weighted to men in 2006, and this has not changed^[3]. This issue may be addressed by at least reducing the pay gap.

Marie Dzanis, Head of Northern Trust Asset Management, EMEA

One of the reasons why I value working at NTAM is not only the commitment to diversity but the equity and inclusion.  It’s not just about hiring more women or people with a different background, it’s really about giving them a voice and supporting them at the executive table. That requires dedication and buy in at the firm level, and us as leaders creating a culture in which it is okay to think differently and challenge existing practices and business structure, along with managers who show willingness to be vulnerable and be held accountable.  

*McKinsey 2015 

Have you observed a change in the industry in recent years and do you think the industry is evolving towards gender parity on all levels?

For the investment industry, this is still very much work in progress. I’m proud that at Northern Trust Asset Management half of the executive team is diverse, as is my executive team in EMEA. This has been a growing focus for investors who not only see the business case, but also demand that their personal values and professional values coexist. Women influence 85% of consumer discretion decisions and will statistically be controlling a significant amount of personal investment decisions at some point in their life.  Leaders need to take inputs from these trends that are showing diverse needs at all levels of the business.  

*Forbes https://girlpowermarketing.com/statistics-purchasing-power-women/

Suzanne Hutchins, Head of the Real Return Strategy, Newton

I consider myself one of the lucky ones. Over my 30 years+ (who’s counting?!) of experience, I have had the pleasure of working with two great female CEO’s too, Helena Morrissey and Hanneke Smits. In my current role, I head up and am a senior portfolio manager of the Newton Real Return strategy (AUM USD 19bn), a team made up of nine eclectic individuals with idea creation from a broad group of highly experienced and diverse research analysts. It’s a team- based culture whereby the ‘whole’ is bigger than the sum of the parts and getting the ‘mix’ right of individuals is crucial to our success. 

Have you seen a change in the industry in recent years and do you think the fund manager position is evolving towards gender parity?

I have seen a change in the industry over the last decade with more women joining and taking on senior leadership roles. However, over the last two years and since the Covid crisis, I have noticed a lot more change amongst all genders, with lifestyles being re-evaluated, opportunities being grasped, moving on, moving up and taking on more challenges that perhaps seemed out of reach pre Covid. I doubt this industry will ever evolve to gender parity just because of practical issues but the right balance needs to be struck - I am of the view the best and most suited person should get the job regardless of gender, ethnic origin, age or otherwise.

Jean Hynes, CEO, Managing Partner, and Portfolio Manager at Wellington Management

At Wellington, this fiduciary duty is our only priority. In addition to serving as a portfolio manager, I am also Wellington Management’s CEO, a position I was promoted into last year. I am only the fifth CEO in Wellington’s history, which dates back to 1928, and the first woman to hold this role. I am one of five female CEOs among the top 20 asset management firms. It is such an exciting time be serving as Wellington’s CEO – with such large secular shifts in how we will work, engage our clients, and help our clients deliver active returns.  I’m excited to help Wellington continue to evolve, while preserving our shared values of Client, Firm, Self.

Have you seen a change in the industry in recent years and do you think the fund manager position is evolving towards gender parity?

I think the asset management industry is on a journey toward being more deliberate about diversity. We are at a crucial inflection point where firms must recognize diversity as a business priority, where diverse perspectives are necessary to generate insights about an ever increasing complex world and are critical to innovating novel solutions for our clients.  I’ve seen some progress in equal opportunity for women, but there’s plenty of work left to do in the pursuit of true gender parity. 

At Wellington, we have been building a diverse and inclusive culture for several decades, and we too look at this as a journey. We want to provide a supportive workplace that gives everyone the opportunity to grow their careers to their fullest potential. For me, these efforts are personal. I’m fortunate to have spent the last 30 years at a firm where collaboration is built into our DNA. Going forward, I think this collaborative culture will help us make real progress toward these goals. 

Julie Bech, Portfolio Manager at Nordea Investment Management

That is also the case for the investment management industry.The progress towards gender equality has historically been slow. Succeeding in gender equality requires, amongst others, changes in society norms and values, as well as in legislation. The obstacles are different from country to country and from industry to industry.

That being said, there are lots of things firms can do to speed up the process towards a more diverse and inclusive work culture. At Nordea, we are committed to ensuring that both our corporate structure and workplace reflect our respect for Diversity and Inclusion (D&I). Indeed, it is a vital part of our corporate DNA. Our governance structure reflects this reality and it is embraced at the highest levels within the firm. We strive to build on NAM’s strong multi-cultural foundation and to transition to a fully inclusive organization characterized by equal access to opportunity and transparent communication. However, as many other firms, we still have a lot of work ahead of us.