IA and Thinking Ahead Institute publish benchmark report on EDI in UK’s investment management industry
FOR IMMEDIATE RELEASE
The Investment Association (IA), alongside WTW’s Thinking Ahead Institute, has today published an industry-wide data report on equity, diversity and inclusion (EDI) data in the UK investment management industry. The EDI Data Survey provides an overview of diversity data collection, including a demographic snapshot of the industry's workforce. The report also explores how data can be used to inform EDI strategies, with the aim of fostering inclusivity and attracting and retaining diverse talent in the industry.
The availability of clear and consistent data is crucial in establishing a benchmark, which will support firms to drive positive change and ensure diversity is embedded at all levels of their organisation. Gaining a better understanding of the makeup of the workforce (65%), fostering an inclusive corporate culture (60%) and using data to better inform EDI initiatives and interventions (48%) were cited as the top three drivers of diversity data collection.
The commitment to increasing diversity comes from the top of firms, with most (86%) identifying CEOs, Board directors and executive leadership, as ultimately accountable for EDI in their organisations. As leaders look to drive change, firms across the industry are reviewing their recruitment practices, and more than three quarters (77%) use inclusive job descriptions, such as gender de-coding. The majority (79%) of firms are also engaged in partnerships with external diversity and inclusion-focused initiatives and organisations, including our talent solution, Investment20/20. Nearly two thirds of firms are actively working on building awareness of the industry among young people.
The report found that almost all (96%) firms in the industry collect data on two or more attributes and 71% collect against four or more attributes, with age, gender and ethnicity having the highest response rates. This data revealed that:
- Just under a third of the industry’s workforce is aged between 18 and 34, compared to 43% of the UK’s working population. Some 63% of industry employees fall in the 35 to 64 age bracket and just 1% are 65 years old or older. This compares to 62% and 4% of the UK’s working population, respectively. This suggests a relatively younger composition of the investment management workforce, which is contrary to historical perceptions of an industry with an older employee demographic.
- Although the gender balance has improved over recent years, 55% of industry employees are male and 39% female, with 7% not disclosed.
- The industry is predominantly White, with 60% White employees, 10% Asian and 2% Black, compared to the breakdown of London’s population of 54%, 21% and 14% respectively.
Access to more comprehensive data across a wider range of attributes has the potential to lead to more effective EDI strategies. For example, a third of firms (33%) have indicated plans to start collecting data on socio-economic background, caring responsibilities and neurodiversity. The report also suggests that firms need to focus on inspiring trust through clear communication and setting the ‘tone from the top’ with leaders actively engaging in shaping values throughout the entire organisation, to encourage more employees to disclose their data.
Karis Stander, Director of Culture, Talent and Inclusion at the Investment Association, said:
“It’s crucial that the investment management industry reflects the people that we serve and the society we operate in. Our EDI Data Survey offers a comprehensive look at the state of diversity and inclusion in our industry. Creating a culture of diversity presents a clear business case, and organisations with an inclusive workforce offer better returns, drive innovation, retain talent, and ultimately, provide a better service to our clients.
“Data is the backbone of creating and implementing an effective EDI strategy. It offers the best possible opportunity to drive change by informing allocation of resources, evaluating the success of initiatives and progressing current and future diversity and inclusion plans. I hope that this survey will provide a useful benchmark as firms continue on their diversity journeys.”
Marisa Hall, Head of the Thinking Ahead Institute, said:
“Unlocking industry progress in equity, diversity and inclusion means measuring more than we currently do. But transformational change requires more than just data measurement – it involves deeper thinking on issues necessary to build a sound infrastructure for equity, diversity and inclusion plans. This study serves as a gateway to change, being the first-ever unveiling of UK-specific EDI statistics, and I hope it establishes the pulse monitor for progress in the UK investment industry.”
Notes to Editors
Please click here to view the EDI Data Survey.
Figures as of 31 December 2022.
Findings in the survey are based on:
- Questionnaire responses from 52 UK investment and fund management firms who collectively represent 75% of total UK assets under management and employ 75% of the approximate 46,200 people directly employed by the investment management industry in the UK.
- Data provided to the IA by member firms for other EDI-related workstreams.
- Interviews with senior personnel from IA member firms.
- Data sourced from third party organisations where specified.
For further information, please contact:
Helen Ayres, Head of Communications: [email protected]
T: +44 (0)20 7269 4620
Arianna Schardt, Communications Executive: [email protected]
T: +44 (0)20 7269 4625
IA Press Office: [email protected]
About the Investment Association (IA):
The IA champions UK investment management, supporting British savers, investors and businesses. Our 250 members manage £8.8 trillion of assets and the investment management industry supports 126,400 jobs across the UK.
Our mission is to make investment better. Better for clients, so they achieve their financial goals. Better for companies, so they get the capital they need to grow. And better for the economy, so everyone prospers.
Our purpose is to ensure investment managers are in the best possible position to:
- Build people’s resilience to financial adversity
- Help people achieve their financial aspirations
- Enable people to maintain a decent standard of living as they grow older
- Contribute to economic growth through the efficient allocation of capital.
The money our members manage is in a wide variety of investment vehicles including authorised investment funds, pension funds and stocks and shares ISAs.
The UK is the second largest investment management centre in the world, after the US and manages 37% of all assets managed in Europe.
About the Thinking Ahead Institute:
The Thinking Ahead Institute is a not-for-profit global research and innovation network motivated to influence the investment industry for the good of savers worldwide and to mobilise capital for a sustainable future. Since its establishment in 2015, almost 100 investment organisations have collaborated to bring this vision to light through designing fit-for-purpose investment strategies; working towards better organisational effectiveness; and strengthening stakeholder legitimacy. The Institute currently has around 55 members with combined responsibility for over US$16 trillion worth of assets.