Collective Insight: Where are the women?

C O L L E C T I V E

Special R

Collective Insight is a collaborative initiative published quarterly by the Financial Mail

The articles included here were selected by an independent Advisory Commi ee to reflect some of the best insights from investment professionals, practitioners, and academics in relation to selected financial challenges

Collective Insight enjoys the support of the Gordon Institute of Business Science’s Responsible Finance Initiative, the CFA Society of South Africa, the Financial Planning Institute, ABSIP and the Actuarial Society of South Africa

Our vision was to create a journal that SA’s broader investment community and its stakeholders could collectively “own”, carrying content totally independent of commercial interests.

For inquiries contact Anne Cabot-Alletzhauser on cabota@gibs co za

Convener:

Anne Cabot-Alletzhauser

Practice director of the Gordon Institute of Business Responsible Finance Initiative

Editorial advisory commi ee:

Kelly de Kock

Chief operating officer at Old Mutual Trust Company

Prof Evan Gilbert

Associate professor at Stellenbosch University and strategist at Momentum Investments

Amanda Khoza

Vice-president and board member of the Institute of Retirement Funds SA

Caretha Laubscher

Manager: Consumer Education Framework, Financial Sector Conduct Authority

Lelane Bezuidenhout

CEO Financial Planning Institute of Southern Africa

Nici McDonald

HOD: Certification and Standards, Financial Planning Institute of Southern Africa

Darius van der Walt

Member of the ASSA investment commi ee, head of product development at M&G Investments

Southern Africa

Nerina Visser, CFA

ETF strategist and financial adviser etfSA

Langa Madonko

Principal for investor relations and capital raising at Summit Africa

Fran Troskie

Manager of research and investment advisory at PPS Investments

WHERE ARE THE WOMEN?

We are very excited to introduce a brand-new format to our Collective Insight edition this quarter As a committee, we are constantly looking at how we stay relevant to our readers and pitch the content at the right level for people to really engage with

We believe we ’ ve come up with a format that will bring the right voices to the forefront and create a platform for meaningful engagement on topical and important issues facing the financial services industry

So, what’ s different about this edition? In a nutshell, we have created a platform between the Gordon Institute of Business Science (Gibs), Collective Insight/FM and the professional bodies that oversee the talent development in our industry, that allows us to:

● Start with the production of high-quality research on issues of urgent concern to South Africa and specifically the financial sector

In this edition, the study was commissioned by EPPF and conducted by Gibs, but in future research may come from any reputable institution or body

● Obtain insights and critique on the study from industry professionals who are attuned to and affected by these issues

● Socialise those insights through a multimedia forum that includes the print and digital format of Collective Insight and the FM

● Debate the issues through in-person and recorded roundtable discussions that are sponsored by professional organisa-

tions (CFA Society, Absip and so on) and create implementable collaborative solutions

● Disseminate those solutions through the various professional societies

It was a great privilege to be the first editor of the new-look Collective Insight, and I am really looking forward to our future editions in this format

In particular, the issue of gender parity in asset management is one that is (for obvious reasons) very close to my heart

Reading the study, followed by the views from fellow women in the industry, made it very clear to me that this is an issue that requires us as an industry to dig deep and have honest, uncomfortable conversations about not just male behaviour within asset management firms, but the industry itself and what we are aspiring to and what outcomes we want to achieve for the people of South Africa

If this conversation ends with this issue of Collective Insight, then we have failed in our objective

Once you have read this edition, I urge you to join our roundtable discussions and share your views and ideas, and to carry these conversations to your dining room tables and your office boardrooms, and to shout from the rooftops that more engagement is needed if we are to make any meaningful change in transforming the industry into one that women are excited to be part of, and that has as its objective the advancement of the country as a whole

What do you think of the new format? We would love to engage with you about ideas for future research or if you just want to share your thoughts on this issue or join the roundtable discussions (Dates to be announced shortly )

E-mail us at cabota@gibs co za x

The asset management industry considers the lack of women’s representation

Kelly de Kock

PAVING THE WAY FOR RESEARCH ON WOMEN’S PARTICIPATION IN ASSET MANAGEMENT

career: from trainee to retiree;

● Women who had excelled in the industry as well as those who had felt they had no choice but to leave the industry; and

and implications. By prioritising this study, we aim to uncover the challenges faced by women in the industry, with the ultimate goal of fostering greater diversity and inclusivity

Welcome to a groundbreaking Collective Insight issue, where we delve into a pivotal research study that explores the underrepresentation of women in the asset management industry

Recent statistics have shown that women make up only 20% of the workforce in the asset management sector in South Africa However, a remarkable contrast can be seen at the EPPF, where women constitute more than 50% of the asset management professionals, all of whom are making significant contributions and driving change within the industry

Despite this achievement, we recognised the pressing need to investigate the broader underrepresentation issue, making it a top priority in our pursuit of transformative change

To shed light on this important topic, we approached the Responsible Finance Initiative at the Gordon Institute of Business Science to conduct research on the phenomenon. This collaboration led to the creation of our Diversity in Asset Management study, which can be accessed on our website (www eppf co za)

In this edition of Collective Insight, we share with you what the participants of the EPPF study felt about the study’ s conclusions Did the insights seem to ring true? Did the stories resonate? And, did the suggestions for a way forward seem viable and implementable?

First a note of caution This research is a qualitative compilation of women ’ s lived experiences as investment professionals Did it capture all women in the industry in South Africa? At best, it probably only captured a third That third, however, represented an excellent diversified sample It included:

● Women from large asset management houses, small boutiques and asset management teams embedded in larger financial service companies;

● Women at different phases of their

● Women (and some men) across a broad demographic spectrum This means that we must take care not to draw sweeping conclusions from anecdotal observations Still, the study provides a clearer template for how our research on this problem needs to evolve: it’ s not about increasing the number of women as much as it is about

This study represents a paradigm shift in our assessment of the shortage of women and other diversifying factors in asset management We firmly believe that true transformation can only be achieved when we challenge conventional norms and redefine leadership roles within our own organisation and that of our industry partners

Through this study, we are poised to pave the way for a new era in asset management, one that embraces diversity, empowers women and unlocks the untapped potential of our industry

Our investment philosophy revolves around aligning our members’ needs with capable managers who understand the power of an outcomes-focused approach By fostering diversity and inclusivity, we empower our managers to navigate the complex landscape of both listed and unlisted assets, ultimately delivering superior outcomes to our valued members

The research study and this publication mark the beginning of our journey towards transformative change At the EPPF, we are fully committed to translating our findings into tangible actions. We will implement necessary changes within our organisation to promote gender diversity and equal opportunities Furthermore, we recognise the importance of continuous research to gain a deeper understanding of the dynamics surrounding gender diversity in asset management

changing the quality of the experience

Our contributors unveil why this study, and the debate it inspires, surpass previous assessments by adopting a truly distinctive approach that has the potential to reshape the essence of asset management in South Africa

Our decision to embark on this research journey was driven by a profound recognition of the shortage of women in asset management and the understanding that diversity brings power

To effectively address this issue, we knew we needed a comprehensive understanding of the underlying factors

Through these efforts, we aim to drive lasting change that resonates throughout the industry

As you delve into the pages of this issue, we invite you to join us on this trailblazing quest to shape the future of asset management Together, we can break barriers, challenge norms and create an industry that thrives on diversity, equality and innovation The time for change is now, and the EPPF is proud to be at the forefront of this transformative movement x

Saunderson is the chief investment officer of the EPPF

The aim is to uncover the challenges faced by women in the industry, with the ultimate goal of fostering greater diversity and inclusivity

Sonja Saunderson

THE CAUSES ARE MANY; WHAT CAN BE DONE IS THE QUESTION

The reasons for women not being

are multifaceted, and need to

What our participants said:

The EPPF/Gibs Diversity in Asset Management study is an important, seminal research paper that has come at a pivotal time in the evolution of the investment industry, when many competing and rapidly changing forces are weighing down on what a model for future investment success will need to look like The study is unequivocal in its recommendations that the industry we need to see will only be possible through an alignment of focus and a willingness to collectively shift gears through the entire breadth of investment value chain stakeholders, with clear and systematic planning but also with urgency

The study seeks to shift the discussion away from women being the issue, whether directly or indirectly, to a more forwardthinking and potentially uncomfortable line of questioning: why has the industry itself not resonated with or appealed to many more highly accomplished and qualified women professionals to invest their skill, time and energy in building a meaningful career in it?

If the investment industry around the world is to truly serve its stakeholders, its mission must evolve materially beyond a single-minded focus on alpha delivery (at all costs) to a more holistic approach to compounding return and impact That sort of industry will undoubtedly attract and

resonate deeply with a far wider, more diverse and responsible group of true professionals and practitioners

Delphine Govender, chief investment officer of Perpetua Investment Managers

The study highlights how women, over the past two decades, have been at the forefront of reimagining how asset management can generate good outcomes rather than solely focusing on maximising firm profits, and in doing so, securing the integrity of their fiduciary responsibilities as asset managers

Positively, the study demonstrates that women are leading the charge in designing services, products and infrastructure that contribute to increasing the resilience of the sector

An oversight of the report is that it treats the asset management industry as homogeneous Put differently, for example, the analysis does not differentiate between public and private markets practitioners Similarly, it does not factor in the heterogeneity of the asset management industry on the career-pathing opportunities and multiple pathways to portfolio management and key decision-making positions Future research studies on the sector will need to consider this in their designs, especially in terms of sampling and analysis

Fatima Vawda, MD of 27four Investment

As the study suggests, we should be encouraged that women are at the forefront of the impact investing movement and urge more to join From investors and fund managers to social entrepreneurs, corporate leaders, policymakers and academic researchers, women are driving the impact investing field forward and inspiring the case for sustainable investing to improve people and planet

The reasons for this can be found in the hallmarks of what makes an impact investing solution successful

Impact investing requires a high level of collaboration across multiple stakeholders with a creative and iterative solutions mindset This is the antithesis of the “testosterone-fuelled decision-making process ” that often drives the investment environment Effective communication and relationship-building skills are critical in impact investing, as it involves engaging with various stakeholders, including investors, entrepreneurs, nonprofits and government entities.

Women leaders often excel in these areas, possessing strong interpersonal skills, active listening abilities and an inclusive leadership style that fosters trust and collaboration Arguably, a more

We need to rethink what we require of investment professionals to ensure we address the future needs of South Africans

From the study:

Research suggests that women only represent 17.2% of portfolio management professionals in South Africa. Is this a gender issue? A transformation issue? Or is the industry itself in need of a revamp?

Should we really be trying to condition women to slot into the current investment management culture, or should we be looking to change that culture to be more purpose -driven, and so more attractive to the aspirational needs of the women we interviewed?

Our findings:

An expanded set of criteria that introduces social, psychological, environmental and developmental thinking would be far more effective at opening the industry up to women candidates who can make the contributions required for a more purpose -driven investment management industry

Our suggestion:

The asset management industry needs a major marketing effort to change its image as a desirable profession with the power to effect meaningful change in South Africa T h e m e 1

represented equally in the investment industry

be addressed with that complexity in mind

Managers, and Mardé van Wyk, private markets consultant

Delphine Govender Fatima Vawda Heather Jackson

collaborative mindset enables women investment professionals to leverage collective wisdom, share best practices and create synergies that also advance the field as a whole

Heather Jackson, CEO of RBN Fund Managers

The issue in asset management is not so much an image problem as a culture problem Let me reference a study by Corina Sheerin (2013) that explains the existence of gendered behaviour in education and occupational choice The study looked at the effect of individual factors, namely personality, personal identity and goals, and self-efficacy on educational and occupational choice within investment management, and concluded that there are gender differences Men defined success as having a well-paid job that gave them power and more intense competition, which is more congruent with the investment management industry, whereas women attached success and goals to helping others and being in a nurturing environment that cares for its employees

As such, fewer women chose an investment management career, where the emphasis is on personal targets, personal success, beating benchmarks and aggressive performance-driven goals rather than on group-orientated goals

Snowy Masakale, member of the Association of Black Securities and Investment Professionals

What does the future of work in the investing industry look like? Interestingly, the study highlights a vital component of aligning with client needs, yet this is only one perspective; there also needs to be an alignment with employee needs

The future of finance and work should encompass both client and employee needs, recognising their interdependence The history of the investment industry paints a picture that is tough and cutthroat, and filled with male bravado where IQ trumps EQ

The investment industry has clearly not kept up with and adapted to the future of work; instead, it is facing an increasingly vocal Gen Y and Gen Z, who require a new leadership skill set to meet their demands and they are not settling for anything less

They want to be part of a company culture that reflects their values They recognise the significance of purposeful work and the need to be acknowledged for their contribution, and they seek companies that provide holistic wellbeing and support for “mind, body and soul” within the workplace

Angelique Kalam, head of sustainable

investments at Futuregrowth Asset Management

In the area of product development, the industry would do well to incorporate input from clients There needs to be a deliberate effort to solicit input, and then product development teams need to synthesise these into specific technical inputs for the purposes of their financial modelling If the industry is to do this, and do it well, it will be relevant for many years to come and will pivot into an endeavour steeped in purpose a fundamental shift away from the status quo, which is something that is sorely needed

perhaps, as the article and research seem to suggest, portfolio management, given the inability to control market outcomes for clients, should stop being so well remunerated, and other, more clientfacing/asset class allocation/investment advice roles should be given more significance

Mike

Arbuthnot,

founding voice for Asisa’s Fezeka graduate programme

Azola

Zuma, CEO of Sanlam Investment Management

What would hasten this shift? The South African investment industry’ s experience with BEE over decades highlights that the diversity of the industry is unlikely to change unless there is some form of external pressure to do so One option is to introduce official quotas, as has been the case with BEE scorecards Another is pressure from clients to build diverse teams to manage their money because they believe this would deliver better outcomes

The latter is conceivable in an environment where there’ s a shift towards the “purposeful capitalism” , as highlighted in the research report, with clients wanting more from their investment managers than a narrow focus on profits and performance track records and instead expecting to see them generate sustainable investment solutions

Cheree Dyers, CEO of Prescient Investment Management

I think a study like this one is critical We need more women in the industry, not for equality purposes but rather to improve all the outcomes mentioned in the study At the same time, we need a recognition from the industry that outcomes need to be improved linking women with better outcomes is one way, but far from the only one Programmes aimed at equal representation are doomed to fail if all we are doing is trying to force women into a role they don’t really want (in its current form, anyway)

The industry, through remuneration as a measure of importance, continues to promote portfolio management as its pinnacle

I think the finding that women would likely be more attracted to the industry if it portrayed itself as a solutions provider, and the link of that to women ’ s desire to have work that is meaningful or provides solutions, is very interesting

If this is indeed accurate and reflective of women in general, you wonder to what extent the socialisation of the girl child is to “blame” In other words, are women selfselecting away from asset management because it is deemed a profit-making industry and girls are taught to believe they should seek to take on work that benefits society? Would it not be much better if all children, boys and girls, were socialised to embrace business ideals that were beneficial to the bottom line and to society?

Unathi Loos, portfolio manager at Ninety One

The study raises several critical questions about the representation of women in the industry While the report confirms our view on the need to foster more gender diversity in the industry, it includes several findings that conflict with our own experiences and observations

It is important to start with the biggest of all perception issues the suggestion that investment management is a “boys’ club” with “clubhouse interactions” determining career trajectories and characterised by “testosterone-fuelled decision-making” In our experience, this is an outdated view and is not reflective of our own experiences in Coronation’ s investment team

Coronation Fund Managers

As Unathi Loos sums up the conundrum: The point that women ’ s underrepresentation in asset management relative to other cognitively demanding jobs is a global phenomenon (not only South African) needs more recognition Women’ s representation in other types of cognitive jobs has actually increased over the years There are also studies that show that more women than ever are studying finance but do not enter asset management It is not that women are not smart or numerate enough for fund management Clearly, there is something else about the industry that renders it less attractive to them x

The study highlights how women have been at the forefront of reimagining how asset management can generate good outcomes

Angelique Kalam Cheree Dyers Unathi Loos

THE COST OF CARE

What our participants said:

The issue is not that we do not have highly qualified women professionals in South Africa; [it’s] that many of the most qualified choose not to work in the formal sector

Fatima Vawda, MD of 27four Investment Managers

The care economy is completely undervalued Women tend to perform the roles needed in that economy, for example raising children and looking after the elderly This leads to women either choosing not to enter the formal sector or having a stunted career journey trying to balance the role of a career with that of a carer More should be done to assign value to “ care ” roles As the study suggests, it is not about forcing a balance of roles between the genders Wo-

men gravitate towards roles where there is purpose; more should be done about recognising the value of these roles

you that working mothers are more efficient during their workday

Women, the care economy and the Martha effect

From the study:

No discussion of parity representation of women in the workplace can take place without consideration of the role of the care economy in South Africa This economy can be defined as the paid and unpaid labour involved in looking after children’s and adults’ physical, psychological, emotional and developmental needs Even during Covid lockdowns, which kept both parents at home, studies show that the bulk of household labour and child care fell on women in South Africa

Despite its critical importance,

Mike Arbuthnot,

founding voice for Asisa’s

Fezeka graduate programme

For far too long women had to act like men to progress in their careers act like men in the sense that they prioritise work instead of family to be seen as having ambition Working hard supposedly meant ignoring the caregiving role that women are culturally and traditionally faced with in exchange for climbing the ladder

This issue has gone even deeper: women delay having children so that they can be comfortable enough to afford childcare and make enough money to still be relevant at work while trying to provide the best care for their children Some women joke that they will make up the lost time with their family with expensive holidays Actively making women ’ s lives easier through navigating workplace and home life will attract women back to the workforce

Kgabang Moloedi, investment analyst at the EPPF

The report speaks to the care economy, for which women are often responsible Conversations need to be had within organisations about enabling participation in both investments and the care economy Child rearing should not be a reason to need to step back from the career ladder: you can do both In fact, some research will tell

the true economic value of “care” never properly features in our economic planning or accounting

In 1995, the UN Development Programme estimated women’s unpaid work to be worth $11-trillion, compared with a global GDP of $23-trillion, yet little progress has been made in formally recognising this sector, much less in formally rewarding the “caregiver” for their contribution

Another important dynamic for women in South Africa is “the Martha effect” This is the phenomenon that shows girls tending both to outperform boys and to persevere longer in their studies Yet there is still an approximately 15% gap in pay as women enter the workforce

Ann Leepile, CEO of Alexander Forbes Investments

While the current investment culture persists, issues regarding the care economy will continue during discussions about better gender representation This is because the culture does not naturally lend itself to addressing the challenges within the current work environment These are factors outside the typical cultural considerations that each workplace needs to contend with For us to get better gender representation within this culture, the idea of decoupling the care economy from women needs to be socially normalised Getting external assistance is not financially feasible, and someone needs to take the lead internally

This can result in conversations about the care economy being dragged into the core of the current work environment Such conversations include topics such as canteen etiquette rules, parking arrangements, office design, the possibility of taking occasional naps during the day when one is pregnant or has been up all night with children, and even religious matters

Increasingly there are a myriad issues people are exposed to within the work environment Therefore the work culture will need to be ahead of these arising issues constantly so that, as a priority, people maintain the actual work of investment

Our suggesstion:

This has broad implications for the kind of employee benefits that will attract and retain women professionals Effectively, businesses need to recognise that the dividing line between home and work has become blurred And with government failing to deliver on critical areas of social capital, it is becoming more incumbent for businesses to step up to the plate This relates to the offering of benefits that help fill the gaps regarding access to workplace solutions for early childhood development or caregiving, flexitime and health-care solutions that lift the burdens on mothers, and also to ongoing skills development programmes that enhance one’s human capital value

It’s not just about the money one earns it’s also about how effectively the employer can help women alleviate other pressing needs that their roles tend to demand

Various causes are mentioned for women not getting recognition for the work of caring that is part of their responsibility

Ann Leepile Nomathibana Okello

Alicia Davids, Asisa Academy

Heather Jackson RBN Fund Managers

Kirsty Savin Clucas Gray Investment Management

Pallavi Ambekar Coronation

Sonja Saunderson EPPF

Nerina Visser Letshego Rankin Prescient

Heleen Goussard RisCura

Tshego Dichabe Aeon Investment Management

Unathi Loos Ninety One

Anne Cabbot-Alletzhauser Gordon Institute of Business Science

Vanessa van Vuuren Sanlam Investment Management

Santhuri Thaver Ashburton

Snowy Masakale ABSIP Sawa Nakagawa

Kirshni Totaran Coronation

Mardé van Wyk Private markets consultant

Melissa Breda Public Investment Corp

Nomathibana Okello Terebinth Capital

Helena Conradie TenFour Partners

Jennifer Henry Stanlib Multimanagers

Kgabang Moloedi

Kelly De Kock

Cheree Dyers

Prescient Investment Management

Daphne Botha Futuregrowth

Delphine Govender Perpetua

Fikile Mbhokota Satrix Fatima Vawda 27four Investment Management

Angelique Kalam Futuregrowth

Azola Lowan Coronation

Ann Leepile Alexander Forbes Investments

Alida Jordaan

“Our thanks to the women professionals of our industry for your contributions to this important work –and to making our industry stronger. May these insights help you to flourish further.”

and our clients’ life savings

Nomathibana Okello, MD of Terebinth Capital

There are studies that indicate a high dropout rate of women in asset management after having children vs those with other careers. This could speak to both industry culture and the wider societal norms of women as primary caregivers Creating family-friendly workplaces will help wo-

CLOSED DOORS

What our participants said:

As the report will show, at entry level, competency is never in question Women are qualifying with all the right degrees necessary for successful careers as fund managers, and there is equal representation of both genders in the CFA exams

What we clearly need to reassess is the culture of our organisations, the composition of our staff complement, especially at

men to return to work after they have had children or to retain the full working hours often required to be promoted

Unathi Loos, portfolio manager at Ninety One

A deeper issue that came to the fore from this study is that several women do not aspire to senior leadership positions because their families do not believe in equal opportunities for men and women The

senior levels our young women joining the world of investments must see themselves in senior levels, as chief investment officers, CEOs and senior portfolio managers You can ’t be what you can ’t see

Ann Leepile, CEO of Alexander Forbes Investments

Here’ s a harsh reality for young black investment professionals in Cape Town: if you ’ re not into mountain biking or hiking or some sort of outdoor athletic endeavour, you don’t get to participate in one of the most critical socialisation exercises of all for advancing your career

Kgabang Moloedi, investment analyst at EPPF

It is true that in South Africa the qualification criteria are too narrow Studies have shown that in other countries the path to investment management is more varied This is likely due to the structure of our education system, which seems to prefer specialisation at undergraduate degree

point made about the impact of Covid and lockdowns on women ’ s career choices is an important one Now, women have to be both full-time mothers and full-time workers, and the hybrid working model has only worsened the problem Owners and leaders of asset management companies need to delve into this negative dynamic

Jennifer Henry, president of the CFA Society South Africa

level The reality, though, is that even with broader entry criteria in terms of university coursework and specialisation it is hard to see how maths and accounting skills would not be needed to succeed in the industry (if not as an entry requirement, then as part of the in-house training the study proposes) given how analysis and portfolio construction is done

Similarly, the inclusion of social, psychological, environment and developmental criteria for entry into the industry would only gain mainstream acceptance if shown to benefit the broader team performance and outcomes for clients These criteria should be seen in the context of how they add to the team’ s “collective intelligence” and not used to stereotype women as less numerically apt than men

Unathi Loos, portfolio manager at Ninety One

It’ s really not about men vs women or other demographic markers Rather it’ s about recognising and valuing how differ-

Gaining entry into the club

From the study:

Ask women professionals how they got into the exclusive domain of portfolio management and the disturbingly candid response is invariably: by serendipity For most of our subjects, asset management as a profession was never an aspirational goal To begin with, very few of the women who ended up in asset management even knew what it was until they got there University programmes dedicated to portfolio management were few and far between, and seemed more targeted to the day-trading type of investor Larger asset management companies have started offering training programmes to graduates as stepping stones to industry participation. But the experience of the majority of trainees who were interviewed was that the training more often led them to call centres or low-level administration jobs. From there, entrance into the investment or analyst club was stymied because these low-level functions were not seen as providing the trainees with adequate technical know-how

Our findings:

The current push to hire more women in asset management seems to be based on the notion that this would increase diversity of thinking on the team The irony is that the qualifying criteria for entry are exactly the same for all candidates: “must demonstrate strong mathematical skills and/or have a background in accounting or economics” When qualification criteria are so narrowly defined, this significantly limits the ability to acquire differentiated thinking

Our suggestion:

Asset management as a profession has a serious image problem in terms of attracting more women professionals We need to be able demonstrate that asset management has the power to dramatically change the course of the South African economy and people’s lives, that the role of “portfolio manager” is not as critical to success as the role of “solutions provider” or “research analyst”, and that the future of asset management will demand more professionals with backgrounds in development thinking, social impact, psychology and data-processing skills to provide that truly differentiated mindset that these teams require

The industry needs to embrace the diverse contributions of women

entiated levels of problem-solving, information processing and implementation combine with differentiated social experiences to contribute to a far more effective decision-making process

I don’t believe widening the skill set is sufficient to solve the problem. Unless investment managers and their teams across the industry genuinely welcome diverse thinking, backgrounds and skills and are ready to embrace a meeting of minds with women and other investment team members who have not traditionally been represented in the investment industry, change is unlikely to happen

Cheree Dyers, CEO of Prescient Investment Managers

We also agree on the importance of fostering cognitive diversity throughout our business We believe that this is best achieved by ensuring that we have a diverse workforce through our rigorous recruitment process, and empowering each person to use their voice and share their views We believe that combats the risk of groupthink in our investment process Our support for contrarian ideas is evidenced in the practice of blind voting ahead of research meetings to seek out differentiated views, and our biannual “minority view” days, which specifically seek to challenge prevailing portfolio positions Individuals expressing minority views are celebrated for thinking differently

– Coronation Fund Managers

It is concerning that women seem to be predominantly stuck in investment support roles or investment analysis roles, despite many studies showing that diversity can only improve decision-making I found the point made about women needing to be trained in navigating power dynamics to be novel Mentorship programmes need to be aware of this

The point made about having a serendipitous moment that put women on the path to being a portfolio manager resonated with me Companies need to create these lucky moments for women in investment support and analysis roles through mentoring and deliberate sponsorship, by promoting young women within their organisations and ensuring their visibility in key client and stakeholder engagements

simply do not stay in the industry long enough to earn the opportunity for recognition and promotion Reasons for this have typically been attributed (rightly or wrongly) to intrinsic factors such as lack of self-belief, ambition and drive among women to aspire to top roles, and extrinsic factors such as the construct of and envir-

THE POWER OF REPRESENTATION

Every ‘She did it’ motivates and inspires more women to believe they can do it too

What our participants said:

The importance of having a voice and knowing your voice counts

This is the most critical part of accelerating transformation as it sets the foundation for women to understand that their voices can be a tool to drive transformation, not only in the workplace but in society Instilling self-belief and confidence in young women is necessary for transformation

Letshego Rankin, head of institutional business at Prescient Investment Management

I am intrigued to learn that the vast majority of women leaders in asset management went to girls’ schools It would be interesting to find out how many male leaders in the industry attended boys’ schools as opposed to mixed-sex education Another important question is whether leaders of industry generally attended private or Model C-type schools In my experience as a parent of a son and daughter who attended former Model C schools (not private or highly affluent schools), the learners are given a clear sense of their place in the world, their responsibility in it and the possibilities that lie ahead just because they are privileged to be at these schools

onment within the industry itself, being historically set up as an “old boys’ club” structured to exclude women, as well as being an industry that has been broadly unsupportive of women given their multiple roles in society

Delphine Govender, chief investment officer of Perpetua Investment Management

en A few young people are privileged to receive this kind of training elsewhere by virtue of their extracurricular involvement, but the majority are lacking in it, and this could be incredibly beneficial, especially to young women Leadership skills could include EQ, transactional analysis, personal mastery, decisionmaking, critical thinking, problem-solving and communication skills These have historically been known as soft skills but more recently have become known as the hard skills

Alicia Davids, CEO of the Asisa Academy

The report highlights the value of considering intersectionality in data analysis It demonstrates the intersection between beginning at the beginning the influence of homes and the wider social structures in which women are brought up and their subsequent experiences in the workplace and their self-efficacy This is particularly important in a country like South Africa, where patriarchy, along with the enduring legacies of racial and gender discrimination, continues to deeply affect all aspects of women ’ s lives

Fatima Vawda, MD of 27four Investment Managers, and Mardé van Wyk, private markets consultant

Jennifer Henry, president of

the CFA

Society South Africa

In my 25 years of direct involvement in the investment industry, almost all the informal and formal engagements around the material lack of senior women in our industry have culminated in one narrative: women

What stands out in the report is that women leaders in the asset management industry have a strong sense of self-confidence, which emanates from a particular upbringing and schooling system In addition, knowing that women graduates show the necessary technical aptitude, what could be included in school and university curricula and even graduate programmes in the workplace is business leadership training for young wom-

There is an underlying pattern that without women ’ s representation, peer support and visibility, coupled with sponsorship from key decision-makers, it is difficult for most to imagine that becoming a key decision-maker is possible This emphasises that mentorship and access to role models are imperative to model the possibilities that exist for women investment professionals Basically, every “She did it” motivates and inspires more women to believe they can do it too, especially when industry players provide meaningful opportunities for them

It is a call to arms to equip women investment professionals with the tech-

Jennifer Henry

Mardé van Wyk

The keys to success

From the study:

TWhat really stood out for us in this study were the areas of commonality between those women who achieved success This commonality occurred in areas we hadn’t expected Apparently, “it all begins at the beginning”. Women who perceived themselves as being successful in their careers repeatedly attributed this success to the fact that it had been ingrained in them since childhood that “their voice was worth hearing and could add value”. This seemed to pertain no matter what their demographic background

Other common themes related to education being seen as a top priority, economic self-sufficiency as a necessity, and having strong role models who would take an active interest

Women who succeeded were women who didn’t need a roadmap they were prepared to assume risks without necessarily demanding commensurate rewards This may in turn have contributed to the fact that the older cohorts were invariably underpaid and undervalued in their earlier careers.

Our suggestion:

The salary disparity gap seems to have narrowed substantially of late, given demands for equal recognition for equal work. But compensation of investment professionals is particularly problematic irrespective of gender or race.

Effectively the industry could benefit from a rethink of its compensation practices if it wants to communicate to clients that addressing their needs is the top priority (and not just beating the competition) That means a rethink of where in the value chain of delivery is the greatest attention given to both understanding client needs and creating the right expectations as to what can be delivered. Achieve this (along with a targeted marketing effort as to what asset management can achieve) and we think this will open up more interest from women professionals.

Tshego Dichabe

nical competencies to hold their own in this highly competitive, ever-changing space This will be the key to changing the face of leadership and influence in the investment management profession

Tshego Dichabe, CEO of Aeon Investment Management

The study states that the number of women in analyst roles is increasing, and this remains a critical entry point to portfolio management In our experience, when recruiting for South African equity analysts, only 25% of the CVs we receive are from women We therefore agree with the study’ s finding that more needs to be done to increase awareness of the industry at high schools and universities

As such, we spend considerable time and effort on interventions focused on attracting women into the industry at these levels These include our annual Women’ s Day event, where high school girls have the opportunity to meet with women in the industry, attending university career events and our bursary programme, with 58% of the students sponsored in 2023 being women In addition, our CEO hosts an annual Youth Day event that is attended by finance and business majors from South Africa’ s leading universities

We also agree on the importance of training programmes and actively invest in these We run an extensive internal internship programme that has benefited 91 graduates over the years, and about half of those interns are now permanent employees Four of these permanent employees are members of the South African investment team More than half of our current cohort of 20 interns are women

Coronation Fund Managers

It was a male senior colleague who tried to dissuade me from registering for the CFA, saying it would be too difficult and I stood no chance The only basis for his assumption? He had tried to write several times and failed Several years later, to my dismay, another senior male colleague was encouraging a male colleague to register for the CFA exams His core argument: “Come on, look how many of these chicks here did it You’ll manage ”

To the young women starting out, I say to you: find a sponsor, be technically competent and never be deterred by a room full of men Your seat at the table is pivotal, you do not need to conform or be someone else to fit in, the discomfort will steer the right conversations, the different thinking you bring will add the

much-needed alpha, and the support of other women in the space will give us a sustainable industry

Ann Leepile, CEO of Alexander Forbes Investments

BREAKING FREE

Do we want to train women to slot into the existing models of asset management?

Or do we want to train women to expand on the current model?

What our participants said:

According to Maslow’ s hierarchy of needs, self-actualisation is the highest level of psychological development, where personal potential is fully realised

I would like to argue that the financial services industry lacks an understanding of how black women struggle to recover from racial trauma According to Maslow, people’ s external lives reflect inner lives I would like to include this book by W Blanford, as doing so may influence the next set of academic literature to improve our industry: Exploring the Likelihood of Black Women Self-actualizing: The struggle to recover from racial trauma

Snowy Masakale, member of the Association of Black Securities and Investment Professionals

School leaders, teachers and university staff need to be much more clued up about the possible trajectories for women students in the financial services industry They need to start changing the narrative within the classroom and the curriculum

Knowing that women graduates show the necessary technical aptitude, what could be included in school and university curricula and even graduate programmes in the workplace is business leadership training for young women

Alicia Davids, CEO of the Asisa Academy

It’ s not about transforming women to fit the environment, but changing the environment to deliver on client outcomes which will naturally be more attractive to women (in general) Perhaps it is part of the reason incubation programmes and enterprise

and supplier development programmes are not delivering: the environment that these programmes are being dropped into is not conducive to allowing for these types of initiatives to succeed Arguably, similar programmes in less hostile industries have been successful.

Asisa’ s Fezeka female graduate programme should be alive to the challenges women face in the industry and look to at least acknowledge that women in general are looking for a space that is not that of the traditional male role The programme should not necessarily promote the welltrodden route to portfolio management but look to develop the skills in a changing environment to ultimately achieve better outcomes for clients which in the future, as suggested by CFA studies, will be a more valuable and important skill set

Mike Arbuthnot, founding voice for Asisa’s Fezeka graduate programme

As part of the actions that need to be taken now to better support women in asset management, I would add that more direct engagement, more probing assessment of limiting behaviours by value chain participants and a more critical evaluation of systemic beliefs regarding women in leadership roles need to be tackled

Asset allocators and influential decision-makers need to reflect honestly about the kinds of concerns and limitations they tend to implicitly attach to women-led teams and firms (against those led or dominated by men) This can include unwitting biases, including requiring women-led teams and firms to have far larger benches of talent to support them; treating staff movements in women-led teams with

more scepticism; attaching a greater perception of risk (imposing higher risk-management hurdles); and/or displaying paternalistic behaviour in terms of supporting women-led firms

The irony is that the women who do take up the “ power seats” , against many identified odds, are arguably more determined, more committed, more alert to threats and vulnerabilities and more deeply thoughtful about their right and responsibility to succeed

Who the messenger is matters too Delphine Govender, chief investment officer at Perpetua Investment Management

Key investment decision-makers (especially men) need to be asked to identify women for whom they will professionally take responsibility in terms of preparing them for key investment team positions, and it should be factored into KPA and KPI discussions and rewards while monitored over a three- to five-year term

Tshego Dichabe, CEO of Aeon Investment Management

Where can we start laying the foundation for a generation that can start changing the shape and nature of the ceiling?

The way forward on a road that is still far too rocky

● Place greater emphasis on early education initiatives;

● Facilitate the development of young minds let them know that their voices deserve to be heard; and

● Expand the programmes which provide menstrual products for young women so that they can stay in school without disrupting their education

Where can we, currently bumping our heads against the glass ceiling, start having an impact?

● Let us set aside our squabbles and our he-said/she-said arguments;

● Continue to beat our fists against the glass ceiling agitate for gender parity as much as we do for racial inclusion;

● Ask for changes such as flexitime and workplace childcare initiatives; and

● Demand that our companies participate in women-focused internships and bursary programmes

Where can those of us who’ ve made it to “the other side of the glass” , make a difference? We can make a noise by stamping our feet on the glass ceiling, and we can support, mentor and engage, regardless of race or gender or preconceived ideas

We need to advocate for a meritocratic environment, one in which skills are identified, developed and harnessed

Fran Troskie, senior manager and research analyst at PPS investments

Bottom line:

Do we want to train women to slot into the existing models of asset management that focus more on outperformance than on client or societal solutions? Or do we want to train women to expand on the current model to better accommodate future investment community needs? x

From the study:

By conducting a qualitative study we were able to extract some insights that we probably never would have picked up in a quantitative assessment These represent the “dark underbelly” of the issues that confront women on this journey. They may well be purely anecdotal, but they warrant noting:

Our most painful interviews were with black women professionals who had been given “high-status” jobs, only to either fail as organisational leaders or quit the industry altogether. You don’t have to be overly cynical to see how these women had been employed to fulfil tick-box imperatives and not to create genuine transformation We had expected there to be allusions to sexual harassment, T h e m e 5

but what we hadn’t expected is that most of these events occurred between young black women client relationship managers and their own clients. Perhaps more concerning was the fact that their managers may well have been aware of these incidents but felt powerless to act against a client. The first two points highlight the fact that young black women professionals face additional hurdles that can translate directly into low self-esteem and impostor syndrome. On a few occasions, the progress of women was actually impeded by other women the notion being that “I had to fight my way to get here, so now you’ll have to as well” Founding entrepreneurs can sometimes suffer from anchoring in other words, unless you were part of the founding team, you’ll never be considered an insider and worthy of equity, regardless of what your gender is or how significant your contribution is to the business

The irony is that the women who do take up the ‘power seats’ are arguably more determined, more committed, more alert to threats and vulnerabilities and more deeply thoughtful about their right and responsibility to succeed

Snowy Masakale Mike Arbuthnot Fran Troskie