Women: If you ever need a bathroom in a hurry, pray that you are near a conference of asset managers. You won’t ever find a line for the ladies room.
Scarce is an understatement when it comes to discussing women in asset management. Less than 10% of the 7,700 U.S. portfolio managers are women, and only 184 of the 7,000 U.S. mutual funds are run only by women. The U.K. isn’t much better, with 7% of its funds managed or co-managed by women, the Financial Times reports.
The numbers are even lower in terms of assets, according to a new Morningstar study. Just 2% of fund managet assets in the U.S. are run by women. Women are way more likely to be doctoring your children or defending you in court than managing your money.
It’s a funny state of affairs: Studies have shown that women are typically better at investing than men. In Iceland, women mopped up the mess the boys had made in the run-up to the financial crisis.
The Financial Times reports:
Erin Davis, senior banking analyst at Morningstar, said: “Investors are losing out as a result of this. A more diverse management produces better results. It is clear the industry is also missing out on a host of untapped talent.” She added: “The fund industry’s leadership ranks are less diversified than other comparable professions. A woman is much less likely to be running a US mutual fund than working as a doctor, where the ratio is 37 per cent, or a lawyer, where the ratio is 33 per cent.”
So what gives? Apparently, recent female college graduates don’t seem all that interested in the industry. Fund managers need to do a better job at communicating what they do and encourage women to come on board, says Helena Morrissey, CEO of BNY Mellon subsidiary Newton. Firms should also focus more on the management of funds by teams, which is often the reality, rather than naming one key individual, says Anne Richards, CIO of Aberdeen Asset Management.
Photo: iStockPhoto.com.