05.12.2021

Diversity & Inclusion: Buy Side’s Competitive Advantage

Asset managers that commit to diversity and inclusion are more likely to be recommended by investment consultants and considered for mandates by institutional investors.

A new study from Coalition Greenwich finds a positive correlation between asset managers’ perceived commitment to Diversity and Inclusion (D&I) and their performance in a range of important service and business metrics—including likelihood to be recommended by consultants. In fact, asset managers with the highest scores for D&I were three times as likely as their peers to be included in consultants’ recommended short lists.

“With the 10 largest investment consultants accounting for almost $20 trillion in institutional assets under advisement, it’s clear that a commitment to D&I can deliver immediate, tangible economic benefits for asset managers,” says Susan Gould, Coalition Greenwich Relationship Manager and author of Commitment to Diversity and Inclusion: The Hidden Competitive Weapon.

Asset managers who received the highest ratings for diversity and inclusion from investment consultants also outperformed their peers in assessments of investment, service and overall quality, and several other important measures.

“In some industries, the economic payoffs of diversity and inclusion can take time to emerge,” says Susan Gould. “That’s not the case in asset management. In this industry, managers that demonstrate a true commitment to D&I have created a powerful competitive weapon.”

Source: Coalition Greenwich

Related articles

  1. A Web of Interdependencies

    The buyside seeks greater control and optimization of their trading opportunities.

  2. The test confirmed the viability of a blockchain-based distribution model.

  3. Daily Email Feature

    Bitcoin-Related ETPs Take Off

    The first bitcoin-related ETF has listed in the US.

  4. The ETF will invest primarily in bitcoin futures contracts and does not directly invest in bitcoin.

  5. RBC GAM finds anti-corruption, cybersecurity and climate change are top ESG concerns.