Women continue to lag in asset management

Women make up 28% of the industry, but at the current rate of promotion and retention, investment teams will reach gender parity at the end of the decade.

Progress is slow and poaching is rife in Australia's $4.3 trillion investment sector, with a four-point increase from 24% in 2017, according to Future IM/Pact.

The diversity initiative partners with Rest Super, Australian Ethical Investments, Australian Retirement Trust, Aware Super, Colonial First State, HESTA, Mercer, QIC, TCorp, and UniSuper.

New research tracks three years of workforce data at 22 firms, assessing appointments, promotions, and exit rates.

At the senior level, gender parity remains a challenge.

Asset owners hire more women compared to asset managers (33.2% versus 24.5%) - particularly in 'head of' roles - but struggle to retain talent, with 18% annual turnover compared to 10% for asset managers.

Women portfolio managers declined from 23% in 2017 to 19% in 2024. In five years, this is likely to sit at 24%, with parity another 19 years away.

Founder Yolanda Beattie said targeted support is key to ensure "we don't just attract female talent into the industry at the lower levers, but help women grow and flourish into senior positions."

Female senior analysts are 40% more likely than men to move funds - that's down to talent poaching.

"One fund's gain [is] another fund's loss and the whole industry [is] only moving slowly ahead."

To drive retention, the research shows culture, flexibility, and hybrid working are key for women.

"Developing the emotional intelligence and leadership capability of investment leaders so they can effectively support and advocate for women aspiring to investment decision-making roles must be a priority. Doing so should be aimed at creating the culture where everyone can do their best work."

"Parity is far from guaranteed. While women are being hired, promoted and retained at proportionally higher rates than men at most levels, men continue to substantially outnumber women. That means any complacency can quickly unwind the progress made. Now's the time to double down and accelerate momentum," Beattie said.

Rest Super senior responsible investment analyst Stacey Sellwood said support mechanisms are vital.

"Leaders' can be pivotal in encouraging women to stretch themselves and fostering their confidence, especially those at the analyst level," Sellwood said.

"It's important that leadership in investments reflects the diversity we are aiming to achieve. When young women see successful female leaders, it's easier to believe in their own potential and understand there's a place for them at the top."