Investment management firms increase demographic data collection providing broader snapshot on industry workforce

The Investment Association (IA), alongside WTW’s Thinking Ahead Institute, has today published its second annual Culture, Talent and Inclusion Report: A Demographic Snapshot of the Industry – the most comprehensive demographic dataset for the investment management industry in the UK.

The 2024 report captured data across eight attributes: age, caring responsibilities, disability status, ethnicity, gender, neurodiversity, sexual orientation, and socio-economic background. Respondents represent 71% of total UK Assets Under Management (AUM) and employ 81% of those directly employed by the investment management industry in the UK.

The survey is designed to help build a more robust picture of the investment management workforce and serves as a vital tool for gaining insights into the dynamics that shape the recruitment, advancement and retention of the people who work in our industry. 

Key findings on firms’ data collection include:

• Firms are collecting data against a wider set of characteristics compared with 2022, with over 60% of respondents collecting data across at least 6 of the 8 characteristics listed above.
• Age (97%), gender (100%), and ethnicity (92%) have the highest response rates, and an increasing number of firms are now also collecting data on disability (71%), sexual orientation (71%), and socio-economic background (55%).
• The top motivations for data collection are commitment to fostering a positive and inclusive culture (92%), tracking against internally set diversity targets (66%) and compliance with current or future regulation (61%).
• Non-disclosure rates across all attributes declined year-on-year, with gender and sexual orientation seeing the largest decreases at 7% and 5%, respectively – indicating growing employee trust in firms’ data collection processes.

On the demographic make-up of the industry, this year’s figures show:

• The industry’s workforce is relatively young, a feature consistent with last year’s data, with just over a third (34%) under 35.
• 41% of investment management employees are female, a two-percentage-point increase since 2022, and 53% are male.
• The industry makeup stands at 62% white employees, 10% Asian, 3% black and 2% from a mixed ethnicity background. The non-disclosure rate for ethnicity is 18%.
• 70% of executive leaders hired in 2023 were White/White British compared with 80% in 2022. Notably, the proportion of individuals hired with mixed/multiple ethnicities rose to 13%.
• Female representation in the 50-64 age bracket declines, leading to a wider gap between men and women in this age group. We start to see the gap widening between men and women from aged 35 upwards.

The survey also found that accountability for equity, diversity and inclusion (EDI) strategies starts at the top of firms, with 66% of respondents identifying CEOs and executive leadership as accountable, followed by board directors (21%). Less than a third (29%) of all firms leave implementation of an EDI strategy to their EDI teams, reflecting shared responsibility and a strong commitment and buy-in at the highest levels.

Karis Stander, Director of Culture, Talent and Inclusion at the Investment Association, said: 

“People are at the heart of our industry’s success, and we benefit from harnessing the collective strength that comes from nurturing talent across all sectors of society. The latest Culture, Talent, and Inclusion Demographic Data Report provides valuable insights into our workforce composition. It highlights the benefits of embedding robust data collection and analysis, enabling us to pinpoint areas for change and shape more effective EDI strategies.

“Year-on-year, we see encouraging progress, with more firms broadening their efforts to collect demographic data and growing trust reflected in employees’ increased willingness to share their personal information. Achieving meaningful and sustainable change will take time and requires perseverance, commitment, and a unified effort across the industry.”

Marisa Hall, Head of the Thinking Ahead Institute, said: “Last year's intent to assess the pulse of equity, diversity and inclusion progress across the industry is yielding its first fruits. Tangible improvements in data collection, response rates, and the consolidation of year-on-year trends from the second consecutive year of research reflect continued efforts in this space. EDI is one of those soft factors increasingly influencing organisational success and investment performance. The insights revealed today have the potential to uncover hidden drivers and patterns for tomorrow. This study looks to the future – to the organisations of tomorrow.”

Notes to Editors

Read the full Culture, Talent and Inclusion Report: A Demographic Snapshot of the Industry here.

Figures as of 31 December 2023. Findings in the survey are based on:

• Questionnaire responses from 58 UK investment and fund management firms who collectively represent 71% of total UK assets under management (AUM) and employ 81% of the approximate 45,800 people directly employed by the investment management industry in the UK. 
• Qualitative feedback from the IA’s survey advisory group and the IA’s HR Committee.
• Data provided to the IA by member firms for other Equity, Diversity and Inclusion (EDI)-related workstreams.  
• Case studies received from IA member firms. 
• Data sourced from third party organisations where specified.