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 managersâ€™ perceived commitment to Diversity and Inclusion (D&I) and their performance in a range of important service and business metricsâ€”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 consultantsâ€™ recommended short lists.
— Coalition Greenwich (@CoalitionGrnwch) May 11, 2021
â€śWith the 10 largest investment consultants accounting for almost $20 trillion in institutional assets under advisement, itâ€™s clear that a commitment to D&I can deliver immediate, tangible economic benefits for asset managers,â€ť 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.
â€śIn some industries, the economic payoffs of diversity and inclusion can take time to emerge,â€ť says Susan Gould. â€śThatâ€™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.â€ť
Source: Coalition Greenwich
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