Amplifying Diversity - Women in Portfolio Management

The culture and perception surrounding asset management pose significant challenges in both the attraction and retention of women employees. In certain sectors of the industry, there may exist an atmosphere marked by aggressive cultures, where an employees’ productivity or commitment is often judged by the hours spent in office. However, this has not deterred the legal industry, known for being high pressure environments. 52% of lawyers are women¹.

Perhaps it is because of the deep-rooted cultural stereotypes that often associate men with financial acumen and risk-taking, while women are perceived as more risk-averse. These biases can affect hiring decisions and career progression.

Challenges in implementing flexible work arrangements have also been recognized as another major factor in contributing to low representation of women in senior financial services positions. It is often hard for portfolio managers to take extended breaks of several months or years for caregiving responsibilities, gaps in the track record can be seen as detrimental to one’s career.

The industry continues to face challenges in retaining skilled women. With the preference towards stability and reliability, firms are typically prompted to retain managers who have served for extended periods. With the predominant male presence in portfolio management, this leads to “tenure bottleneck” hindering the enhancement of gender balance.

Widespread assumptions about women’s high-risk aversion can impede their ascent to leadership positions in portfolio management. Stereotypes about women’s cautiousness and aversion become hurdles in acquiring roles that require risk-taking and decision-making.

A well-diversified portfolio can only be achieved by a diversified team of individuals. Ultimately, portfolio management with a gender lens approach, is a proven mechanism for the genuine beneficial of the industry, however, more efforts are required to establish an inclusive and equitable environment.

Historically, men have dominated networking circles within the finance industry. Access to mentorship, sponsorship, and networking opportunities is crucial for career advancement. Women may face challenges in building these connections. The scarcity of visible female role models in portfolio management can discourage young women from pursuing careers in finance. Representation matters, and having successful female leaders can inspire others to follow suit.

Historically, men have dominated networking circles within the finance industry. Access to mentorship, sponsorship, and networking opportunities is crucial for career advancement. Women may face challenges in building these connections. The scarcity of visible female role models in portfolio management can discourage young women from pursuing careers in finance. Representation matters, and having successful female leaders can inspire others to follow suit.