An industry group backed by leading asset managers in Europe wants to shed light on the significant lack of diversity within the European asset management industry. The research project has been initiated by the Diversity Project Europe, an initiative of eight leading asset managers established last year, and is supported by PwC Switzerland.
The study will survey asset managers across Europe during the coming month. It seeks to develop a better understanding of the state of ‘DE&I’, which stands for diversity, equity and inclusion, at asset management firms in ten European countries. The findings will be presented in June.
“Based on our current understanding, we anticipate discovering a notable gap in gender and other diversity, equity, and inclusion issues compared to other professional service industries,” said Ric van Weelden, acting chair of the Diversity Project Europe’s advisory committee.
Other studies, such as Citywire's Alpha Female Report, have found that gender parity at European asset managers for example remains out of whack and made clear that almost no progress was made during 2023. The percentage of female managers in the Citywire Fund Manager Database rose by a meagre 10 basis points, to 12.1% from 12% in 2022.
The Diversity Project Europe was launched last year as an initiative backed by Aegon, Axa, Franklin Templeton, HSBC, Nordea, Pictet, Quoniam and T. Rowe Price. France's Natixis since then has also joined the group. It has been inspired by a similar initiative in the UK championed by Baroness Helena Morrissey. The UK's Diversity Project is a cross-company initiative championing a diverse and inclusive UK investment and savings industry.
Van Weelden said he hopes that the Diversity Project Europe’s study will help find an explanation for the imbalances.
“The asset management sector remains unchanged, but the reason for this stagnation is not entirely clear and our goal is to uncover them,” Van Weelden said. ”Our research also aims to determine whether cultural or legislative factors play a more significant role in this context, acknowledging the challenge in distinguishing between the two.”
“Ultimately, with this research we seek to make a persuasive argument for an improved DE&I landscape and facilitate a path for companies to achieve it.”
Sector maturity assessment
The project aims to map the DE&I regulatory landscape across 10 countries in Europe and assess each nation’s progress in fostering diversity and inclusion in Asset Management, with a specific focus on diversity data practices. Additionally, a sector maturity assessment will be conducted, focusing on the pivotal themes of gender, social mobility and inclusive culture. This initiative will establish a benchmark, serving as a yardstick for all future Diversity Project Europe members.
According to the project announcement, the report won’t just be a snapshot; it will be a call to action, packed with actionable recommendations and showcasing successful DE&I initiatives in member countries. It will aim to drive positive change across the European Asset Management industry. A high-level comparison with the situation in Asset Management in the UK, the US and Asia-Pacific will also be included.
“Diversity, Equity and Inclusion is the cornerstone for a successful people and business management strategy in the asset management industry,” Johannes Smits, partner at the Diversity, Inclusive Culture and Equity Practice at PwC Switzerland.
Different perspectives enrich decision-making
“By fostering an environment where diverse voices are heard and valued, we can tap into a wealth of perspectives that enrich decision-making processes and enhance performance. Institutions can no longer ignore the increased expectations from regulators, investors, clients and employees. We are excited to collaborate with DPE on this report, which we think will show the path forwards.”
The Diversity Project Europe, or DPE, was launched at the end of 2023 to pave the way for a more inclusive asset management industry across Europe. The project’s board includes Camilla Udd, Quoniam Asset Management; Charlene Sagoe, Natixis Investment Management; Isabelle Brancart, HSBC Asset Management; Jerome Broustra, AXA Investment Managers; Linda Russheim, Diversity Project UK/HT Financial Marketing; Nancy Rowe, Franklin Templeton; Zahra Sheikh, Pictet Asset Management; and as Chair, Ric van Weelden, Indefi.
In addition to PwC Switzerland, a number of pro-bono third party agencies will also be supporting the DPE with its efforts to reach a more inclusive asset management industry. Reputation management consultancy Lansons | Team Farner has been brought in to provide strategic communications support and drive awareness in the media, whilst Core – Raise and Retain will be supporting with the strategic narrative, pitch decks and the website.
